.png)
.png)
Allocating revenue and capital expenditure between the co-owners of a property
My client (Mr A) owns a property jointly with Mr B. During the period of ownership the property has undergone extensive refurbishment costing £200 000.
Mr A funded all this expenditure because Mr B was unwilling or unable to do so. The two co-owners agreed that as a consequence Mr A would receive a higher proportion of the rents for a period.
These rents have been declared on his tax returns for all relevant tax years by his former accountant who also claimed £150 000 of the amount spent as a revenue expense in an earlier year’s tax return. As far as I can tell this was never queried by HMRC.
The property is now for sale and I am trying to establish the allowable deductions in the capital gains tax computation.
As £150 000 has already been claimed against the rents my feeling...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
