Tax expenses rent?

ben100000

So I bought a property to rent out and before the first tenants moved in I had a council tax bill, gas electric & water which I paid myself obviously. Can I put these bills onto my expenses even though they were before first tenants moved in? I also had a damp course done before they moved in, again can I put this down? I bought a fridge freezer and washing machine before they moved in aswell can those be added?

pramsay13

You can claim expenses occured in renting out the property. 
The bills and white goods are okay, but not the damp proof course as that is a capital cost.

theartfullodger

Buy a book on property tax.  There are more than 10 taxes a landlord may pay.  Keep CGT records (eg damp course) until to sell (could be 40 years

anselld

Yes.
Yes.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505

No.  You cannot claim the initial cost of furnishing although you could claim for replacement or repair if/when they break down.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim3210

ben100000

pramsay13 said:

You can claim expenses occured in renting out the property. 
The bills and white goods are okay, but not the damp proof course as that is a capital cost.

anselld said:

Yes.
Yes.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505

No.  You cannot claim the initial cost of furnishing although you could claim for replacement or repair if/when they break down.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim3210

So which is correct as these are conflicting? I guess the bills are allowable but as you can see one has stated white goods is allowed but not the damp course while another says white goods are not allowed but damp course is?

anselld

DPC could fall either way depending what was there already.  If it had zero DPC and you are adding it from scratch then it would be a capital improvement rather than expense.  However very few properties have zero DPC, they usually have a DPC which has failed and therefore DPC treatment can be considered a repair (which is allowable expense).

I stand by my answer on white goods, but check the link provided for yourself or ask an accountant. 

oldbikebloke

ben100000 said:

pramsay13 said:

You can claim expenses occured in renting out the property. 
The bills and white goods are okay, but not the damp proof course as that is a capital cost.

anselld said:

Yes.
Yes.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505

No.  You cannot claim the initial cost of furnishing although you could claim for replacement or repair if/when they break down.
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim3210

So which is correct as these are conflicting? I guess the bills are allowable but as you can see one has stated white goods is allowed but not the damp course while another says white goods are not allowed but damp course is?

you read the HMRC links then you will know for yourself.
which person knows what they are talking about. Hint: the person who supported their statement with evidence

white goods on first purchase are disallowed, as clearly stated in the manual. Subsequent replacement of those initial items is allowed. That situation arises from the abolition in 16/17 of what was until then the default option called the "wear & tear" allowance, that is now history, and the replacement rule is what now applies from 16/17 and onwards 

oldbikebloke

Capital v revenue does have an element of subjectivity to it, however that is because it stems from applying key principles in a consistent manner. 
BIM46900 - Business Income Manual - HMRC internal manual - GOV.UK (www.gov.uk)
"This is an area where it is important to establish the facts. In particular it is crucial to determine what forms the asset or ‘entirety’ in question. Is it the item that has been worked on or is that only a part of a larger asset?

Care needs to be taken as people can use the same terms for different types of work. For example some people use ’renewal’ to mean simply repairing an asset that has become run down and others may mean that the asset has been replaced."

I agree with anselld that the repair of an existing DPC is revenue, not capital, because "the entirety" is the property, not the DPC

Installation where none existed before would be capital because in that case the new DPC is the entire asset

pramsay13

As you've discovered there isn't a list of what you can and can't claim. 
You have to read the rules and interpret them for yourself, and be able to justify it if you ever get audited.
I don't disagree with the others, some of the answers are it depends, as you haven't provided enough information. 

[Deleted User]

https://forums.moneysavingexpert.com/discussion/6225042/rental-expenses

https://forums.moneysavingexpert.com/discussion/6216441/rental-tax-expense/

https://forums.moneysavingexpert.com/discussion/6027685/rental-income-tax

Maybe it's time to RTFM you have been directed to numerous times now or pay an accountant to help you.

ben100000

Lover_of_Lycra said:

https://forums.moneysavingexpert.com/discussion/6225042/rental-expenses

https://forums.moneysavingexpert.com/discussion/6216441/rental-tax-expense/

https://forums.moneysavingexpert.com/discussion/6027685/rental-income-tax

Maybe it's time to RTFM you have been directed to numerous times now or pay an accountant to help you.

Everyone has answered any queries I've ever had with no problems, so perhaps instead of commenting with things like RTFM and not adding any useful information to the conversation at all maybe keep your pointless posts to yourself?