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Posted Sat, 24 Aug 2024 14:44:36 GMT by James Minifie
Hi Hoping you can help please? My sister and I inherited a flat in 2013 valued at £150,000. Inheritance tax was paid on this at the time. Last year, we paid £10,000 plus legal fees to extend the lease from 93 years to 213 years. We are planning to sell the flat for £265,000 in the near future. In terms of CGT, can we include the lease extension and legal costs to reduce the tax liability? Many thanks, James
Posted Fri, 06 Sep 2024 08:15:49 GMT by HMRC Admin 25 Response
Hi James Minifie,
Yes, these costs  are allowable.
Thank you. 

 

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