What expenses can I deduct when selling a property?

Hi Cam,

There are a number of costs you may be able to deduct when selling a buy-to-let property to reduce your Capital Gains Tax (CGT) bill. Here's a breakdown of some of the main ones:

• Estate agent fees

• Legal fees

• Stamp Duty Land Tax (SDLT)

• Surveyor and valuation fees

• Improvement costs - specifically "capital improvements", which are things that add value to the property or prolong its life, such as extensions or loft conversions

• Costs of buying and selling - such as auction fees (if applicable), mortgage broker fees, and marketing costs

However, whilst these deductions can save you a great deal of money, there are still some costs which you won't be able to claim. Namely:

• Mortgage interest or repayments

• Council tax or utility bills

• Normal wear-and-tear repairs

• Furniture costs

In order to make a claim, you'll need to add up all your allowable costs, keep receipts, and deduct the total from your selling price before calculating the taxable gain on your UK Property CGT Return.

This could get a bit confusing so if in doubt, best to check in with a professional who can advise you on how to run the numbers.

Hope this helps!