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Posted Sun, 26 Nov 2023 18:44:33 GMT by
I had a Buy To Let property I have just sold. The out going tenant left it in a terrible state such that a local estate said it was un-saleable on the open market and might only achieve £75,000 at auction. I therefore renovated it specifically to sell at a cost of £20,000 and then achieved £125,000 in a sale through an estate agent. Can I claim the £20,000 renovation costs against Capital Gains as the renovation was specifically to sell the property and resulted in a gain in value of approximately £50,000.
Posted Wed, 29 Nov 2023 12:16:47 GMT by HMRC Admin 25
Hi sean003.5,
When calculating a Capital Gain, you can claim the cost of  any work carried out to improve a property  (for example, buiding an extension). However, normal maintenance costs (cleaning, refurbishing, decorating etc) cannot be claimed (though such expenses can be claimed against rental income).    
Tax when you sell property
PIM2030 - Deductions: repairs: is it capital?
Thank you. 

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