Paying a seller £220k now and the remaining £20k when the property is resold.
Question I'm purchasing a property for £240k which I intend to resell in 6 months time. I am paying the seller £220k now and the remaining £20k when I resell the property.
The question I have is - does IR see the £20k as a cost in the transaction and deductible for CGT purposes? For example if I resell the property for £300k, is my CGT liability £300k - £240k (as the £20k is seen as a cost in the trasnaction) or is it £300k - £220k.
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