Question:
Can I claim the cost of renewing the lease on a second property for capital gains tax (CGT) purposes when I sell the property?
Arthur Weller replies
Simply put, the cost of renewing a lease is capital expenditure and, as such, will be allowable expenditure in a CGT computation. However, a short lease (i.e., with less than 50 years to run) is a 'wasting asset' and so is subject to special rules.
