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Posts Tagged: capital gains liability

Can Paying For Your Purchasers Fees Reduce Your Capital Gains Liability?

Posted by on June 15th 2017 in Blog Posts, Property

When calculating your capital gains liability there are certain costs that are deductable under S38(1) of the Taxation of Chargeable Gains Act 1992. The following items can be deducted from your gain:-

  • The original acquisition value;
  • The value of enhancing the asset;
  • The value of establishing, preserving or defending the title and right over the asset; and
  • The incidental costs of the disposal

When you deduct all of the above from the sale price you are left with the gain which is then subject to capital gains tax.

Incidental costs of disposal include certain costs of the vendor i.e. legal fees etc; however the First Tribunal...

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