repairs made between tenants - Tax?

mcmayhem

Hi I had a difficult tenant for six years and the place needed an overhaul. I invested about £15,000 in ripping out the fireplace and adding radiators, replacing doors, flooring, re plastring knocked about walls, paintwork, kitchen & bathroom fittings and a conservatory type roof where a plastic transparent lean to type roof had been on the kitchen extension. It seemed madness not to be more thoughtful about heat loss, so its glass and may be deemed an improvement not maintainance. I also spent almost a year as it was more costly than I thought so i did bits myself and had to take financial rests along the way. So no rent - interest free mortgage to pay (though thank goodness that reduced hugely from £500 to £160 in stages over that year as interest fell). The only other bit that might be deemed improvement rather than maintainance was the oak flooring in lounge (room staright off the street so carpets a mess) - which also allowed me to insulate the floor to reduce energy costs.
What advice can anyone offer now I need to do my tax return? Can I claim these sums as costs? if its an low energy based 'improvement' is that allowable? The time I spent clearing, cleaning & painting, can it be claimed?
If I use an accountant (I never have) what do I look for to guarantee suitability?
many thanks

Fire_Fox

Welcome to MSE! Have you spoken with the Inland Revenue? Are you a member of a landlord's association?

phlash

I would say:

Capital (amounts to add to the base cost of the house for CGT purposes)
Radiators (They were improving old heating sysytem)
Doors (I'm guessing these were an upgrade and not maintenance)
Flooring
Glass roof

Tax deductible costs
Re-plastering
Paintwork

As for your time, there is nothing you can claim for it.

Any energy saving related expenditure that qualifies for 100% allowances are specific energy saving items detailed in a list, of which none of what you have done are on there, I believe.

"Expenditures need to be distinguished between capital and revenue. Capital expenditures do not qualify as a deduction for income tax purposes. Capital expenditure is, broadly, that which creates an asset and revenue expenditure is the everyday cost of running the property business. The most common capital expenditure for property owners is on fitting out the property with furniture, furnishings and white goods (if it is to be let furnished) and on new kitchens and bathrooms and so on. "
Source: http://www.property-payecheck.co.uk/property_taxation.html#fl

Also see http://www.howto.co.uk/property/rent-to-students/tax_2/ for further advice.

clutton_2

talk to James Smith accountant of Abingdon - very skilled indeed in property matters - has a lot of property clients...

""Radiators (They were improving old heating sysytem)
Doors (I'm guessing these were an upgrade and not maintenance""

in my vfiew - depends on whether these were replacing like for like or not

changing a lean-to into a conservatory is definitely capital improvment - replacing doors etc damaged by long term tenants is not