Can I deduct home improvements from Capital Gains Tax?
Yes, but only genuine capital improvements — not general maintenance or repairs.
Capital improvements are works that added value to the property or adapted it for a new use. These include: extensions and loft conversions; a new kitchen or bathroom (if it's an upgrade, not a like-for-like replacement); structural alterations; and building a garage or outbuilding.
What doesn't count: repainting, replacing a broken boiler with the same type, routine repairs, or general upkeep. These are maintenance costs and HMRC doesn't allow them as deductions.
To claim improvements, you need receipts or invoices for the work. If you no longer have all the paperwork, we can work with what's available — but the more evidence you have, the better.
The cost of improvements is deducted from your gain, which can reduce your CGT bill significantly on a property you've invested in over the years.
Include any improvement costs when you fill in our CGT form and we'll apply them in the calculation.
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