Any way to pay for BTL costs out of this year's expenses, but in planning

saucer

...I hope that makes sense.

We have a BTL which is due to make a profit this year on which I will be paying higher rate tax. I want to replace the windows but have realised that I need to go through planning so there is no chance the work will be approved this tax year. I am not likely to be paying higher rate tax next year so would like to have paid for the work before end March.

Is there any way that I can offset the expense of this work on the current tax year? Thanks!

[Deleted User]

'replace the windows' sounds more than, say, a repair to an existing window. In my view this would be capital expenditure and not able to be claimed against your rental income in any case. It could be claimed against any future capital gain when you come to sell the property.

Even if it could be somehow regarded as a repair the sugestion that you have made wouid not be possible.

saucer

Thank you...I think you are right....it would in essence be an 'improvement' rather than a repair. I thought I would ask anyway

anselld

It's allowable repair.

From http://www.hmrc.gov.uk/manuals/pimmanual/pim2020.htm

... bottom of the page...

"An example is double-glazing. In the past we took the view that replacing single-glazed windows with double-glazed windows was an improvement and therefore capital expenditure. But times have changed. Building standards have improved and the types of replacement windows available from retailers have changed. We now accept that replacing single-glazed windows by double-glazed equivalents counts as allowable expenditure on repairs. "

booksurr

it is an eligible revenue expense

in principle CAVEAT COMING it would be allowed against the BTL but you have not yet spent the money so you cannot possibly offset a future expense when you have not incurred it yet

you will recall that rental tax must follow "normal trading rules" so you cannot claim for an expenses you have not yet incurred.

You could potentially make a payment on account and get an invoice from a supplier to that effect within this tax year and claim that as an expense incurred. That would be somewhat stretching the normal rule but you could get away with it if you claim you are operating cash accounting. However, are you really in a position to pick a supplier now, agree a price and get them to invoice you months in advance of the work? Particularly when you are talking about dealing with double glazing salesmen :eek: and companies that vanish overnight with customer money

[Deleted User]

anselld wrote: »

It's allowable repair.

From http://www.hmrc.gov.uk/manuals/pimmanual/pim2020.htm

... bottom of the page...

"An example is double-glazing. In the past we took the view that replacing single-glazed windows with double-glazed windows was an improvement and therefore capital expenditure. But times have changed. Building standards have improved and the types of replacement windows available from retailers have changed. We now accept that replacing single-glazed windows by double-glazed equivalents counts as allowable expenditure on repairs. "

Well researched

anselld

[Deleted User] wrote:

Well researched

Well hidden!

[Deleted User]

anselld wrote: »

Well hidden!

From the taxpayer at any rate!