Rich H

Hi, We recently sold a flat. In order to sell it we had normalize planning consents (we applied for permission to retain works in a grade 2 listed building, and our application was successful). In formulating our application we incurred architects fees, legal fees, and planning fees. Are these professional fees claimable against capital gains tax? I'm unsure whether normalizing planning consents counts as an improvement to the property. One could argue that it improves the property by making it saleable, and placing it on a firm legal footing. Kind regards

Hi, Are professional fees related to a transfer of equity claimable against Capital Gains Tax? Scenario: I bought a flat in 2010 in my own name. I married in 2017 In 2021 we added my wife's name to the title - a transfer of equity. This incurred professional fees. In 2021 we moved out of the flat and started renting it, meaning it was no longer our main residence. In 2024 we sold the flat. Because it was rented for part of our ownership, it is partly taxable for capital gains. I understand that professional fees such as solicitor fees and agent's commissions for both the purchase and the sale of the property can be claimed against capital gains tax. What about the transfer of equity, which occurred at neither the purchase or the sale but which is essential to the state of ownership at sale? Can solicitors fees (for example) be offset against the capital gain like other professional fees? Kind regards

That's fair enough. Can you then explain to me how these things are treated under the rules of today? I have already looked at the resources you refer to and they are not enlightening, which is the reason for my question.

My question is about the treatment of costs related to a 90-year lease extension. Briefly: I bought a leasehold flat on the open market in an arms-length transaction in 2010, and took up residence in it. The lease length was 125 years from 1982. In 2021 I bought a house and moved out of the flat, renting the flat to tenants (became a landlord). In 2024 I extended the lease on the flat by 90 years using the statutory process of section 42 notice, counter-notice, etc. Lease is now 215 years from 1982. Later this year I will sell the flat, on the open market, in an arms-length transaction. This will lead to a capital gain In the capital gain calculation, I understand I can deduct the costs of sale and purchase such as solicitors fees, surveys, etc. I also understand that I can use the residential relief rules to reduce the taxable gain based on the ratio of days in residence vs not in residence. What I'm not clear on is how to treat the lease extension. The extension is for more than 50 years on a lease that was already more than 50 years, so I believe it's treated as a capital cost. But I'm not sure which bits of the cost can be offset against capital gains. For example, I have incurred costs such as: My own surveyor My own legal costs The lessor's surveyor The lessor's legal costs The lease premium itself How should each of these be treated for capital gains purposes upon the sale of the flat?