I am getting too close to the calculations and need a little advice.
A property was bought in 1985 for £30,000 (inc all the allowable purchase expenses). It was substantailly upgraded in 1990 at a cost of £10,000. It was further upgraded in 2000 at another £10,000
Assume that itt will be sold in 2005 for £300,000 (again net of the allowable sale costs).
I apprecaite that indexation should be applied to the initial build to derive a notional 1998 value and taper relief can be taken on the gain from 1998 to today.
What confuses me is how the upgrades are treated. Where in the timeline are they placed.
Thanks.