Sale of furniture with house

[Sandi]

I have a flat that I sold recently with the furniture and was wondering if the cost of the furniture could be included as an acquisition costs or disposal costs in my CGT computation. It cost over £2,500 and I only rented the flat for a year so don't feel I have had any benefit from a tax point of view on this expenditure. Can anybody help?

[Tax Accountant]

I have a flat that I sold recently with the furniture and was wondering if the cost of the furniture could be included as an acquisition costs or disposal costs in my CGT computation. It cost over £2,500 and I only rented the flat for a year so don't feel I have had any benefit from a tax point of view on this expenditure. Can anybody help?

Cost of the furniture is definitely not an acquisition cost for CGT purposes.

The sale value could be apportioned between the property and furniture depending on whether the sale value of the furniture is identified in the sale contract. Even so, the value apportioned to furniture has to be open market second hand value and definitely not the cost value.

It doesn't matter whether the furniture benefited you from a tax point of view or not. Not that it matters, but surely you claimed the furnishings wear & tear allowance in your rental income accounts.

Ramnik

[Sandi]

Fair enough, thanks for your help

[Tax Accountant]

Fair enough, thanks for your help
You are welcome.
Consider paying it forward, ie help someone else in return if you can when you don't have to.

Ramnik