CGT Allowable Expense in House sale.

Thanks to whoever posted the revenue attachment:
The other expenditure would be of a capital nature and therefore allowable, namely —
Making good dilapidations
 
10.4 Expenditure and dilapidation Expenditure incurred in repairing and putting into a fit state for letting a property acquired in a dilapidated condition is normally inadmissible as a deduction under Case V of Schedule D. For Capital Gains Tax (“CGT”) purposes, however, such expenditure (including expenditure on decorations) may, in general, be regarded as allowable expenditure under section 552(1) TCA 1997.

Referring to this point on Revenue guidance note, perhaps painting a rental property before selling it can be considered an allowable expense for Capital Gains Tax (CGT) purposes, provided it falls under the definition of "enhancement expenditure" as set out in section 552(1) of the Taxes Consolidation Act 1997. This section allows for expenditure incurred on improving or enhancing the property, as long as it is reflected in the property's value at the time of disposal.

If the painting is part of necessary repairs or improvements to make the property more presentable and increase its sale value, it may qualify as enhancement expenditure. However, routine maintenance costs, which are more about maintaining the property's condition rather than improving it, would typically not qualify for CGT purposes.

In this case, assuming the repainting occurs just before valuation and listing
 
Tadhg22 said:
10.4 Expenditure and dilapidation Expenditure incurred in repairing and putting into a fit state for letting a property acquired in a dilapidated condition is normally inadmissible as a deduction under Case V of Schedule D. For Capital Gains Tax (“CGT”) purposes, however, such expenditure (including expenditure on decorations) may, in general, be regarded as allowable expenditure under section 552(1) TCA 1997.

Referring to this point on Revenue guidance note, perhaps painting a rental property before selling it can be considered an allowable expense for Capital Gains Tax (CGT) purposes, provided it falls under the definition of "enhancement expenditure" as set out in section 552(1) of the Taxes Consolidation Act 1997. This section allows for expenditure incurred on improving or enhancing the property, as long as it is reflected in the property's value at the time of disposal.

If the painting is part of necessary repairs or improvements to make the property more presentable and increase its sale value, it may qualify as enhancement expenditure. However, routine maintenance costs, which are more about maintaining the property's condition rather than improving it, would typically not qualify for CGT purposes.

In this case, assuming the repainting occurs just before valuation and listing
Click to expand...
Anyone with thoughts on this?
 
The general consensus is that painting and decoration don't qualify as enhancement expenditure.
 
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The poster was asking if the updated kitchen expenses was allowed for CGT calculation not rental income
 
Yes, correct i was asking re CGT calculation on sale of investment property. Not to worry though, gonna let the accountant figure it out when doing the return.
 
Apologies , mis understood the question

The answer is yes

It's allowed under enhancement costs under the
Taxes Consolidation Act, 1997, Section 552

So the cost of the kitchen is allowed as a deduction for CGT purposes
 
Hi all, I’m selling a house shortly and have started thinking about capital gains tax. I bought it in 2004 and for the most part it was rented out. Does anyone know if the following are allowable expenses:

  1. A beam put into the house straight after purchase based on an engineer’s report.
  2. Double glazing windows added to the house around 2015.
  3. A roof replaced.
Thanks
 
Did you charge any of those expenses against your rental income when calculating the rental profit?
 
I didn't for the beam and did for the other 2 so I suppose there is my answer, should have picked up on that from the earlier discussion.

So for example if I bought the house for €200k and sell after 10 years for €300k but it was my PPR for for 2.5 years, and with allowable expenses of solicitor for sale (€3k), estate agent (€3k), and the beam that was put in when I bought it (€3k) my CGT calculation would be as follows:

€100k profit x 3/4 (to take into account the PPR element) = €75k
Minus allowable expenses: €75k - €9k = €66k
CGT: €66k x 1/3 = €22k

Is there anything I am missing in the above example? Close to the truth but simplified for calcs.

Thanks in advance for any guidance.
 
Slightly off topic, but what paperwork needs to be submitted with the CGT return, given the 6 year records? Searching for a receipt for work done 15 years ago is my issue.
 
Your calculations are incorrect,
Your gain is 100k minus the expenses, gives your taxable gain, you then apportion this over ppr + 1 year/ total ownership, and then deduct 1270 and then tax at 33%
 
For some reason I don’t have the option to quote!

I thought only sale expenses were allowable? Hopefully it’s a buying expense like this as well.
 
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