Question:
I'm looking at purchasing a buy to let property to rent for the next 10 or more years. It will require £30,000 of capital expenditure to bring it to a good standard for letting purposes. I usually destroy all accounts after seven years have elapsed. I am wondering what happens when I come to sell in maybe 15 years? How do I prove what my capital expenditure was in calculating the CGT for the sale? Must I keep every receipt indefinitely?
Arthur Weller replies:
The answer to your question can be found on www.hmrc.gov.uk/cgt/intro/record-keeping.htm. In short, you need to keep your records from the date you incur the expenditure until approximately 6 years after the tax year that you sell the asset.
