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Advice is required on deductions for allowable costs when a property is sold at a gain.
My colleagues and I were having a discussion in the office about what counts as improvements in non-let property for capital gains tax.
We act on behalf of a client who bought a property to renovate and then sell at he hopes a profit. We are aware that there is a potential issue as to whether HMRC could argue that the client is trading but we think we can rebut such an argument in this instance.
If we assume that we can demonstrate that the property sale will be subject to capital gains tax rather than income tax what expenses would be allowable?
My thoughts were that relief against a gain could only be obtained for costs such as extensions and decoration thereof fitted kitchens where there was no fitted kitchen before central heating where there was none before etc. My colleagues seem...
