Upgrades are costs incurred to improve the property beyond its previous condition, or to make changes to the property – for example, an extension.

Costs to restore the property to a previous standard are considered maintenance. You must not include maintenance or repair costs. 

Read more about what counts as upgrades and the value of your own labour. 

You’ll find the figures for upgrades in invoices. If you’ve done the work yourself, you must prepare a summary showing the type of work done. The summary must also include timesheets and hourly rates for your own labour.  

If you’re selling a property that’s been owned since 1990 or earlier, you may adjust upgrades made in 1990 or earlier upwards,  which may reduce your tax.