Tax Deductible Property Repairs - Small Print?

NJB1994

Hi there! I am looking for some expertise on the small print of what qualifies as tax deductible property repairs.

My query has two parts:

Firstly - please can I ask if repair work on a leaky shower (which was causing damage to my kitchen ceiling...) would be an allowable expense? Of note is that I had a leaky shower over a bath tub taken out and replaced with a shower only (this was because I wanted a durable repair and after several failed attempts of 'patching up' the original leaky bath/shower - this seemed like a logical option). This repair was conducted using standard materials and basic fittings (not with the intention to add value to the property, but instead to stop any further water damage and to ensure a functional bathroom was in the property to prepare it for rental).   

Secondly - of note is the timeline of this shower repair work - it was my private home to start with, then in June 2021 I moved out (in with my partner) and decided to rent my home instead. During July/August 2021, I had the shower repaired and tenants then moved in at the end of August 2021. The tenants were the first people to use the shower (I never did as I had moved out of the property illustrating it was not for private/personal use or gain). This timing was intentional as I felt uncomfortable at the thought of having tenants in the property without a working bathroom and therefore chose to conduct the repair work first before moving tenants in. Am I right to say you can claim "costs incurred to bring the property up to a rentable standard" before tenants move in while the property was vacant? 

Considering these two points together, can I claim the shower repair work as an allowable expense on my tax return? Many thanks in advance for anyone’s help and insight with this query! 

 

Jeremy535897

There is no scope for deducting property repair expenses that are incurred prior to the first letting where the house was the landlord's home. See:
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505

pramsay13

If you have moved out and then you are getting the property ready to let out, then any expenses incurred at that point can be claimed as expenses. 
So yes you can claim for the shower repair. 

Jeremy535897

pramsay13 said:

If you have moved out and then you are getting the property ready to let out, then any expenses incurred at that point can be claimed as expenses. 
So yes you can claim for the shower repair. 

I think the issue here is whether the property was in a fit state to let prior to the work being done. If not, I don't think a deduction is due. That would be the case if the property had recently been acquired, and the same approach should apply where the property has recently been the landlord's home (and the work relates to problems arising during that occupation as a home).