Hi, I am a modest landlord with only a couple of BTL properties, and am wanting to sell them. My question is, if you could please advise, can you claim the deposit you paid to secure a btl mortgage as an expense against your cgt liability?
did you claim it against income tax when you bought them . If not then you can set it against ctg
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No I did not claim it against income tax at the time of buying.
Thanks for your reply, Colin.
If you mean the deposit on the property, i.e. the proportion of the purchase price you didn’t borrow, then no you can’t claim that as a capital cost. You can only offset capital costs against capital gains. You can offset the price paid plus your costs of purchase plus your selling costs and any capital improvements against the selling price. You then have the annual CGT allowance plus various other allowances depending on whether you’ve ever lived there yourself that you can set against CGT liability.
The CGT pages of your tax return and the associated help guides will assist with this.
Hi James
The CGT is calculated as difference of total of selling proceed less legal expenses and incidental cost of sales and the original cost of the property + legal fees + capital improvements (if any) + other incidental cost of selling, like agent’s fees, etc.
Call me on 020 8241 6642, to have informal chat, I have wealth of experience in this field.
All the best.
Jay
Thanks for your offer of help Jay. I will certainly give you a call .
James
Hello everyone , my tenants are leaving in 3 months, I am planning to see the house. Do you know how the capital gain tax work?
Thank you so much