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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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House A Value £250,000 with mortgage of £100,000. Owned but

Customer Question

House A
Value £250,000 with mortgage of £100,000. Owned but rented to parents (both 90).
Profit £150,000.
Parents to move to children owning House B with large outhouse.
Outhouse to be converted to suitable disabled property at cost of £50,000.
Can the cost of conversion be set against sale profit if the £50,000 is obtained from the B.Soc and total cost is repaid to B.Soc from House A saleP
Submitted: 4 years ago.
Category: UK Tax
Expert:  Tony Tax replied 4 years ago.

I'm afraid that conversion costs can only be taken account of in a calculation of a capital gain on the property being converted. They cannot be imputed to the property funding repayment of the mortgage taken out to finance the conversion.

I hope this helps but let me know if you have any further questions.
Customer: replied 4 years ago.

OK. Thanks

Expert:  Tony Tax replied 4 years ago.
No problem.
Expert:  Tony Tax replied 4 years ago.
Hi again.

If you have no further questions, would you kindly click on Accept or rate my answer as OK or better so that I get paid. Thanks.