Expenses on Rented property

starM

Hi,

I rent out a property and tenants recently moved out.

I had to make some changes to the property in order I let it out again.

So far I have done:-
1). Painting
2). Chimney removal as it was in poor condition and dangerous
3). Garden - had no fence between the 2 house, it was full of grass so I have removed it all. Fence added + slabs.

I am sure I can include 1st & 2nd items but not sure of 3rd expense?

Thanks
MS

G_M

You cannot offset improvements against business tax liability.

https://www.gov.uk/renting-out-a-property/paying-tax

AlexMac

Yeah, but....
You'll file your tax return online some time after Spring 2014 and the abbreviated form of submission only requires bottom line summaries of about six main categories of expenses (including things like fees, ground rent/service charges, insurances, repairs... to offset rental income) rather than detailed accounts.

I am always scrupulously honest, but if (like many people?) you submit estimates or make the odd mistake about what to include, will HMRC even notice...? I had a mate who simply guessed it or added inflation to last years' data. Unsurprisingly, the taxman never checked, but if they had, they might have screwed another couple of hundred quid in tax... But HMRC never audited him, and if they had, and had upped their take by tuppence-ha'penny, would that have been a waste of their time compared with the better option of going after Starbucks gazillions?

Like life, tax is an imprecise science

anselld

AlexMac wrote: »

I am always scrupulously honest

I don't think HMRC would agree with your definition of "scrupulously honest".