Costs incurred between IHT/probate and CGT of inherited property

Can costs incurred in maintaining inherited property between IHT/probate and sale of property be deducted from CGT liabilites: Service Charges; Utility bills; boiler maintenance insurance; council tax etc

Hi,

No, they cannot. You can see the following guidance to see what is allowable:

CG15250 - Expenditure: incidental costs of acquisition and disposal

Thank you.

The guidance link provided above only refers to deductable acquisition and disposal costs. It does not address my original question. For example, if I acquired a shed through inheritance valued at £500k [zero acquisition costs] then sold it for £511k [£1k disposal costs], the difference would be £10K subject to CGT. CGT due at 18% = £1.8k; balance £8.2K gain post tax. However, between acquiring and disposing of the shed, I incurred costs of £9k [Service Charges; Utility bills; boiler maintenance insurance; council tax etc]. If following your answer above the CGT due at 18% = £1.8k plus £9k incidental costs result in a LOSS of £0.8k. Suirely, that is not correct?

Hi edward Verrall,
The service charges and utility bills are not deductable for Capital Gains as there are not related to the acquisition or the selling of the asset.
Thank you.