deductions from rental income for self assessment

ian103

Hi, I currently rent out my previous house (since November 2013) and need to declare via self asessment form. I understand I can deduct fees, mortgage interest, boiler services etc. Immediately before we rented it out we replaced the kitchen, oil tank (old one was old and out of date) recarpeted a couple if the rooms, widened the drive and redecorated the entire property. Can any of these be deducted (I decorated it my self do its only paint)

casperlarue

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

capital expenditure isn't tax deductible

El_Torro

If you're counting something as repair and maintenance rather than an improvement then yes, you can declare it.

booksurr

ian103 wrote: »

Immediately before we rented it out we replaced the kitchen, oil tank (old one was old and out of date) recarpeted a couple if the rooms, widened the drive and redecorated the entire property. Can any of these be deducted (I decorated it my self do its only paint)

provided the pre trading spend was wholly related to the new rental business rather than your ongoing occupation of the property as your residence then it can be claimed, but some of your list is not clear cut repairs (allowable against income tax) as it could be capital (allowable against CGT)

kitchen - probably counts as a repair rather than am improvement on the basis you had an existing kitchen and unless the new one is of hugely better quality then it is essentially like for like and so is allowable against income tax

- oil tank : like for like repair

- carpets: no question they are a repair

- drive: sounds more like an improvement than a repair so capital

- redecoration: normally regarded as repairs unless it is part of making good works at the end of a major improvement project

ian103

I guess thats what I asking, when does maintenance become improvement.

The kitchen was replaced as the old one was worn out
The kitchen was rewired an a new fuse box to current standards was installed
The oil tank was over its recommended age for a plastic tank
Worn carpet was replaced
Driveway and steps widened/replaced - safety issue and to make it easier to rent
Redecoration -maintenance as decor tired.

Annie1960

ian103 wrote: »

I guess thats what I asking, when does maintenance become improvement.

The kitchen was replaced as the old one was worn out

Repair

The kitchen was rewired an a new fuse box to current standards was installed

Presumably there was old wiring there and you were just updating it? If so, then it sounds like a repair.

The oil tank was over its recommended age for a plastic tank

Like-for-ilke replacement is a repair.

Worn carpet was replaced
Repair

Driveway and steps widened/replaced - safety issue and to make it easier to rent

Sounds like an improvement, so not deductible, but may count against Capital Gains Tax when you come to sell.

Redecoration -maintenance as decor tired.

Repair.

............

ian103

Thanks all, I think I would accept the drive as an improvement, the electrical works, carpet, oil tank and decoration are all repairs, the kitchen I am going to consider a bit more as it was started before we moved out but was designed by the specialist with letting in mind -cost/robust/ ease of cleaning etc.