Deduction of Interest on IP when selling

[letiha]

I feel like a real idiot asking this.

Say you have an IP that has been rented out for however long and you have cliamed interest deductions along the way, is it correct that you can not then use the interest paid to increase the cost base when you sell.

Just trying to work out potential CGT liability for this and next year if we sell.

 

[GZM]

That's correct - you've already claimed the benefit of those interest payments as deductions. By increasing the cost base, you'd essentially be double-dipping.

 

[letiha]

Thats what I figured.

Thanks

 

[peterjohnson64]

and dont forget to deduct any depreciation or building allowance claimed from the cost base as well. Thats the one we see most that catches clients.