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Introduction to this document

CGT schedule of capital enhancements

The cost of structural alterations or improvements to properties counts as capital expenses (enhancements). They can be deducted as expenses when calculating the capital gain or loss following the sale of the property.

Allocating and recording expenditure

There may be a long gap between the time you improve or alter a property and the time you sell or transfer it. For this reason you should keep an up-to-date record of anything you spend for this purpose. You can then refer to this CGT Schedule of Capital Enhancements when the time comes to work out your capital gains tax position following the sale or transfer of the property.

Note. Some major repair work might also count, at least partly, as an improvement or alteration making it important that you keep a record of how this expenditure is allocated between capital and day-to-day expenses for tax purposes.