Navigating Allowable Expenses

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Allowable expenses are essentially costs directly associated with the buying, owning, improving, or selling of your property. They are deducted from the gain you’ve made to calculate the ‘net gain’ – and it’s this net gain that is potentially subject to CGT.

It is important to note that expenses that have been claimed under Self Assessment would not be allowable.

If you do not have receipts for expenses contact us for a discussion as to how you may evidence expenditure.

It can sometimes be tricky to establish which expenses are Capital and which are Revenue. Give us a call if you are unsure.

What Can You Deduct?

The rules surrounding allowable expenses can be complex, but here are some common examples you might be able to deduct when selling a residential property:

1. Buying Costs: These include legal fees, solicitors fees, valuations and any other expenditure directly related to the property purchase.

2. Stamp Duty Land Tax (SDLT): The amount you paid in SDLT when buying the property can be deducted.

3. Improvement Costs: Money spent on enhancing the property – such as the cost of an extension, a new kitchen or a loft conversion – can be deducted. However, routine maintenance and repair costs are not included.

4. Costs related to Title: Expenditure on proving ownership or extending a lease.

5. Costs of establishing the property’s value: If you’ve paid for a valuation of the property to calculate the gain or loss, these costs can also be deducted.

6. Sales Costs: Estate Agents and Solicitors Fees together with any other expenses directly related to the sale of the property

Remember, this isn’t an exhaustive list and everyone’s situation is different, so it’s important to seek professional advice when calculating your CGT.

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What our customers say

Celia Prause
2. April, 2024
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28. March, 2024
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21. March, 2024
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Andy Bacon
5. March, 2024
Having sold a UK residential property I had owned for 18 years I was facing a potentially significant CGT liability. Although the HMRC calculator appeared pretty straightforward I decided to approach an expert and fortunately found James just in time. I found his willingness to provide no obligation up-front advice over the phone very welcome and decided to appoint Tax Bees for peace of mind with the added bonus that his very reasonable fee might be saved when he got into the detail of my case. I certainly pays to spend some time putting together all the facts; as a result it proved very fruitful to invest in James when he significantly reduced my expected liability by many thousands compared to the HMRC online calculator. Lesson learnt - its never as simple as it first appears and not all the rules are entirely transparent!
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21. February, 2024
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14. February, 2024
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2. February, 2024
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28. January, 2024
Fantastic service very efficient attention to detail Friendly and very knowledgeable
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24. January, 2024
I popped into Tax Bees on the off chance that I might be able to get some help with my Self Assessment Tax Return. I drive past the building everyday and often wondered whether they would be able to help advise me. James and Jayne were so friendly and welcoming and after a nice chat and a coffee they reassured me that they could help straight away - even during the month of January which is a very busy month for them. I would certainly recommend Tax Bee's if you have any Tax needs or concerns for your business or if like me you just need help and guidance on that dreaded self assessment. James also looked into my last four years of pension tax relief and managed to get me a rebate. Very happy customer. Thanks again James and Jayne!
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22. January, 2024
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