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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15707
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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When you inherit a house valued at 125000 and then sell it

Customer Question

When you inherit a house valued at 125000 and then sell it for 144000 i now you have an allowance of 11000 plus estate agent fees and solicitors costs and you can deduct costs for home improvements from the gain. Under the definition of home improvements does a new gas boiler, a new electric fuse box plus associated electrical work , a new kitchen, new garage door count as home improvements the work being carried out before the sale for 144000.
Submitted: 7 months ago.
Category: UK Tax
Expert:  Tony Tax replied 7 months ago.
Hi. Improvements that are deductible for Capital Gains Tax purposes usually result in a significant uplift in the value of the property. Take a look here for the HMRC manual notes on capital and revenue expenditure. I wouldn't want to discourage you from claiming for all the items you mentioned but here are my thoughts. I'd certainly claim for the new kitchen. If the new boiler is replacing one that is very old and that was disfunctionng or it was inefficient then an argument can be made that the new one is an improvment to the property. The same applies to replacing old electrical systems. I'm not sure I'd claim for a new garage door. I hope this helps but let me know if you have any further questions.

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