Executors are selling deceased’s home - can they claim expenses under SP02/4 as well as the estate agents and solicitors fees directly relating to the sale.
The amount that is claimable under SP02/4 is higher than the actual costs involved.
TCGA 1992 s 38 makes the position wrt costs deductible on an asset disposal for CGT purposes very clear.
S38(1)(b) specifically provides for a deduction of “any expenditure wholly and exclusively incurred by him in establishing, preserving or defending his title to, or to a right over, the asset”.
SP2/04 specifically provides " the scale of expenses allowable under Taxation of Chargeable Gains Act (TCGA) 1992 s 38(1)(b), for the costs of establishing title in computing the gains or losses of personal representatives on the sale of assets comprised in a deceased person’s estate".
Incidental costs of acquisition and disposal are deductible under s 38(1)(a) and (c) in addition to costs covered by SP2/04.