Records for CGT Allowance

[Carryon Regardless]

From the Rayner thread, it strikes me there might be issues come the sale time of a capital asset. That many, including me are doing these days.

As well as other costs, the purchase and pre rental costs are allowable deductions against our capital gains at sale.

But if we aren't expected to keep records for more than 6 years (assuming the asset was bought many years ago), how are these costs demonstrable - if asked?

[Richlist]

I think the problem is your assumption that you are only required to keep records for 6 years. 

Some of my properties were held for around 20 years before disposal. Mindful that it was to my advantage to record, keep records and file relevant documents so that I could claim all my legitimate CGT expenses and reduce my tax bill, when the time came, I made damn sure I did exactly that. I would never have been able to accurately remember e.g. what my buying costs were after that length of time. I started crunching my CGT numbers months, sometimes years before the property was eventually sold. Knowing that information about your buying costs and capital expenditure during ownership are so valuable to you then I'd suggest digging out the details now on all your properties asap and start a CGT file.

When the properties were each sold and I filled in the CGT document for HMRC, it was all reasonably straightforward because I'd done the ground work way before. By the way, HMRC never asked for proof, copies of docs or questioned any of the figures.

I'd suggest printing yourself off a copy of the CGT doc from HMRC, you can probably get a copy online. It's useful to see the type of information they require......even if you eventually use accountants they can only submit the return based on the info you supply. One piece of info that caught me out on the first few was the date of purchase.......after 20 years that into is not always easy to find.

[Melboy]

I have held a property for over 30 years as well. 39 to be precise.  I have all the documents regarding the purchase in a folder including the original EA's  sale / details. Oh! the prices back then!  😃  It's something I have always done which is really out of character for me. My CGT payment to HMRC will be enormous if I was to sell. It's academic really because I won't be selling this property as I have no need to and in my demise from planet Earth it will pass to a family member, that's assuming the future Government of the day will allow these things to happen.