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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Expenditure: enhancement expenditure

TCGA92/S38 (1) (b)

In order to qualify as enhancement expenditure, expenditure must satisfy all the following conditions: it must

  • be wholly and exclusively incurred ON the asset by him or her or on his or her behalf
  • have been incurred for the purpose of enhancing the value of the asset
  • be reflected in the state or nature of the asset at the date of disposal or
  • be expenditure wholly and exclusively incurred by him or her in establishing, preserving or defending his or her title to, or to a right over, the asset.