Buy To Let - Renovated - Tax CGT?

[KnightsB]

Hi there,

I am wondering if I have a BTL property that I renovated (purchase price 150K + 100K renovations, new value = 250K - new doors/windows/plastering/new kitchen/new bathroom etc), when I go to sell it, do i pay CGT on everything over 150K or everything over 250K?

Thanks

 

[jpd]

That depends what part of the 100K renovations was enhancement expenditure and what part was normal maintenance

Did you claim any of the 100K against rental income?

See here https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx
and here https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-19/19-02-10.pdf

Presumably you have documents to back up the 100K expenditure

 

[KnightsB]

Thanks for the reply.

I don't have the property yet. I am basically trying to figure out best options.

Rough plan - buy a place in cash with my father. Renovate it. Get a BTL mortgage then to repay the father.

I thought you can only claim the renovations against rental income if renovated WHILE a tenant is in situ?

Would the example of renovations above count towards enhancement allowance? As Kitchen/Bathroom etc would still be there, along with windows etc, I would presume so?