Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 05 Apr 2022 11:21:56 GMT by andy sutton
Hi, I have just sold my rental property and before I complete the CGT I would like a little help surrounding deductions. The property was lived in for 11 years so needed a total internal repaint, gardens tidied and check out clean done as none of this was done by vacating tenant. I also incurred 300 miles in mileage allowance as we had to visit the property to retrieve keys and ensure house was secure and isolate water, gas etc. We also lived in this house for 6 years before renting as we couldn't get a mortgage to move so this was a let to buy mortgage initially. I know solicitors and estate agents fees are allowable in CGT but what about the rest? Do I deduct the sums mentioned for the jobs above from the CGT calculation (including private residence relief) or do I put it on the SA (will make a loss this year due to the amount spent on property, can this be carried forward?) Thank you for any help.
Posted Thu, 07 Apr 2022 12:17:40 GMT by HMRC Admin 10

Please note that any expenditure incurred in the maintenance of a property - eg repainting, garden maintenance and cleaning -  is allowable as a deduction from rental income, but is not allowable as deduction when calculating a Capital Gain.

The same applies to expenditure incurred in the management of a rental property (ie cost of travelling to and from the property).

However you can deduct the costs of buying, selling or improving your property from your gain - eg (a) estate agents’ and solicitors’ fees, and  (b) the costs of improvement works (eg building an extension).

For full details of what is and is not allowable, please refer to the Capital Gaind Manual (link provided below).

When you make your online Capital Gains declaration via your Capital Gains on UK Property account (full details provided below) please enter details of (a) the allowable expenditure you are claiming (b) the private residence relief you are claiming.

Capital Gains Manual 

Report and pay Capital Gains Tax on UK property     



You must be signed in to post in this forum.