We are selling a property which will attract capital gains tax (CGT) and have made improvements to it over the time that we have owned it (23 years). Unfortunately, we have lost some invoices for the improvements and have no proof of what we paid. Can we estimate the costs incurred, or will we have to forego the claims?
Arthur Weller replies:
You can estimate the capital expenditure that you have put into the property over the 23 years, and claim a reduction of the capital gain due to enhancement expenditure. However, you must realise that if HMRC should question you and ask to see proof, you will be in a bit of a difficult position.