Reduce Your Capital Gains Tax Bill by Claiming What You’re Owed
If you’re selling a property, business, or asset at a profit, you may owe Capital Gains Tax. But you could reduce your bill by thousands if you’ve made improvements to the asset and have the records to prove it.
- What Counts as a Deductible Improvement?
Capital improvements are works that enhance the value or usefulness of the asset. Examples include:
- Building an extension or attic conversion
- Installing new windows, doors, or insulation
- Upgrading to a new kitchen or bathroom
- Adding solar panels or landscaping
- Expenses incurred for the sale of the property
- What Doesn’t Count?
Routine maintenance throughout the ownership of the property doesn’t qualify:
- Repainting
- Repairing leaks
- Replacing like-for-like appliances
- Any costs claimed as deductions against rental income
However, costs preparing the property for sale may qualify.
- Proof Is Essential
To claim these deductions, you must keep supporting invoices otherwise the Revenue can disallow claims. - How to Claim the Deductions
These costs are added to your base cost when calculating your CGT:
Sale Price – (Purchase Price + Qualifying Improvements + Sale Costs) - Plan Ahead
If you’re considering selling in the next year:
- Start gathering receipts now
- Talk to a tax adviser about optimising your gain (contact us today for information about our tax consultancy practice).
FastTax.ie can calculate your gain, identify your allowable deductions, and file your return accurately. Let us take the stress out of your CGT.
