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Rental property repair costs - how to deduct them?
nottinghammer
Posts: 11 Forumite
Hello,
A quick question on rental properties. I have a rental property with average annual rental income (after costs) of £10'000. This year I had a major repair (replacing a balcony) which cost £5'000. This is a repair and not a capital expenditure. Would I deduct this from my rental income in the same tax year? Or can I spread it over several years?
For background: The property is in Germany, where there is a choice to deduct in the same year or split it equally over 2-5 years. I have to pay tax on the rental income in the UK, and I believe I can't just apply the German deduction rules if they are fundamentally different in the UK.
Thanks,
N
A quick question on rental properties. I have a rental property with average annual rental income (after costs) of £10'000. This year I had a major repair (replacing a balcony) which cost £5'000. This is a repair and not a capital expenditure. Would I deduct this from my rental income in the same tax year? Or can I spread it over several years?
For background: The property is in Germany, where there is a choice to deduct in the same year or split it equally over 2-5 years. I have to pay tax on the rental income in the UK, and I believe I can't just apply the German deduction rules if they are fundamentally different in the UK.
Thanks,
N
0
Comments
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Try a German landlord / tax site. There may be UK based members expert in such matters, but a lot less than in Germany.0
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Thanks! Just to clarify: My question is about how I pay tax for this in the UK, and I assume I have to apply the same rules as if the property was in the UK. I am aware about how to file German taxes for it (which I also have to do), but I am not quite aware how the deduction rules work in the UK.theartfullodger said:Try a German landlord / tax site. There may be UK based members expert in such matters, but a lot less than in Germany.0 -
Uk rules would expect it to be deducted in the year of expenditure. If that creates a loss the loss can be carried forward to future years.0
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Many thanks, that makes it very clear!anselld said:Uk rules would expect it to be deducted in the year of expenditure. If that creates a loss the loss can be carried forward to future years.0 -
Get specialist advice.0
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