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UK Property Tax Portal
UK Property Tax Q&A
Can I offset costs incurred for a property I never purchased?
Question
I have attempted to buy some property in the past year but failed. Thus, I have incurred legal costs and survey costs on properties I have decided not to buy.
Can I set off these costs/losses against capital gains I have made on other properties? Ian Says: The legal and other costs you have incurred are not allowable against the capital gains you have made on other properties as each property is treated separately for CGT purposes. If you were a property trader and subject to income tax on your sales then there is an argument for including these costs in your accounts as abortive capital expenditure or normal running costs of the business.
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