Tax Relief on Buy to Let Property Repairs

Slithery

TripleH said:
I can't think it's as simple as registering for VAT, have work done then deregister as that would seem a great way of 'avoiding' paying VAT and am sure HMRC would have thought of this?

Of course not.
If you're VAT registered it doesn't mean that you can claim back all of the VAT you have paid, I believe you can only offset it against the amount of VAT you've charged your customers.

Marcus-H_2

TripleH said:

But don't you need to be VAT registered still to reclaim it?

Also are there not knock on effects as well when you sell? I can't think it's as simple as registering for VAT, have work done then deregister as that would seem a great way of 'avoiding' paying VAT and am sure HMRC would have thought of this?

Nope, as it is the builder who claims it.
The rules are quite strict & most builders don't bother, because if they fall foul - then they cant reclaim. You will find more information about it if searching about self building, etc. but it also works for bringing non-liveable homes back into use. 

Olinda99

simon_or said:

Olinda99 said:

Boiler repairs go against rental income. New boiler goes against cgt when you sell.

It's not that black and white.

The taxman is fine with replacing older equipment for the equivalent modern version counting as a repair, eg: replacing a 20 year gas boiler that's beyond repair with a modern gas boiler.

If you replaced an old back boiler with a modern combi boiler, that would be an enhancement and hence a capital expense.

Where arguments can be made both ways, my accountant's advice is usually to put it down as a revenue expense.

The likelihood of HMRC putting in the resources to challenge a 50-50 revenue/capital distinction of a few thousand pounds on a domestic property is negligible.

thanks Simon this bears outvwhat you said

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim46915

dimbo61

There is case law with HMRC about replacing wooden single glazed windows with uPVC double glazed windows.
Improved insulation, improved fire safety, noise reduction, less maintenance and that was regarded as repair and replacement rather than capital expenditure.