Lease extension a claimable expense for CGT? or should I lower sale price to cover?

[Hillary]

I have a 72 year lease remaining on my flat I wish to sell. The freeholder want £11,000 to extend the lease to 99 years.

1. Is the cost/legal fees to extend the lease claimable when I pay CGT?
2. Would I be better to sell the property at a lower price (better for CGT calculation), and expect the new buyer to pay for the extended lease, or increase the selling price so the funds come from within the sale (which would mean higher CGT to pay?) but lower potential buyer interest inthe property!

Suggestions appreciated

[jeffrey]

Do you live there? If you do, what CGT would there ever be?

[Hillary]

Sorry to confuse, I use the term "my flat" in generic sense. I used to live in but have let out for longer than I have lived there. My CGT calculated (with relief, last 3 years etc) is still ~£19,000. I just wasn't sure if extending the lease could come off the calculated profit/CGT as it is a cost of the sale (ie sale dependent on it).

My thoughts are if I lower the asking price to sell the flat, getting buyers to sort out the lease extension themselves this may give less capital gains than if I set the asking price higher and include the extended lease.

[Telometer]

Do you live there? If you do, what CGT would there ever be?

A gain arising from expenditure incurred purely to increase the value of the asset. Jeffrey, you're guessing at tax, again, please don't.


Sorry to confuse, I use the term "my flat" in generic sense. I used to live in but have let out for longer than I have lived there. My CGT calculated (with relief, last 3 years etc) is still ~£19,000. I just wasn't sure if extending the lease could come off the calculated profit/CGT as it is a cost of the sale (ie sale dependent on it).

Let's check. Please provide (months will do):

1. Purchase cost & date
2. Dates you lived there
3. Anticipated sale value and date excluding extended lease
4. Anticipated sale value and date including extended lease
5. Dates you rented it out.

[jeffrey]

A gain arising from expenditure incurred purely to increase the value of the asset. Jeffrey, you're guessing at tax, again, please don't.
No, I was asking a question- thank you for answering it!

[Telometer]

Then internet forum convention is that you should start a new thread, rather than hijack an existing one.