Property rental - claiming expenses against rental income and CGT

dllive

Hi

Im currently doing some improvement to my rental (small extension, re-laying out the top floor etc).

I might sell the house in 3 years or so. Am I right in thinking that I could use my builder's invoices to reduce any CGT that may be owed?

Also, Ive had builders in to fix some render and guttering. On their invoice theyve just put 'Maintenance work'. Is that enough to claim against rental income, or do I need to go back to them and ask them to itemise exactly what work was done?

Thanks

monkey-fingers

In terms of CGT exemption,

Maintenance, no. Extension, yes.

It's very clear on the Gov website.
https://www.gov.uk/tax-sell-home/work-out-your-gain

On the other hand, it's the opposite when doing your tax returns - maintenance is an allowable expense
"Property maintenance and repairs – but not major renovations or anything that’ll increase the property’s value "
https://www.usehammock.com/2023/06/12/landlord-expenses/

Mr.Generous

Claim all expenses that are solely for the upkeep of the rental property, the improvements can only be offset against CGT when you sell. Doesn't really matter what the invoice says detail wise, you need to be able to show you paid it if you get a HMRC enquiry (specific) or random check. I would note on the invoice what the work was just to aid memory. I keep a spreadshhet of all expenses. 

dinosaur66

yes claim for the render and guttering 

i claim for things i get no receipt for like boiler repair /fence repair / just write it down in my accounts book / write the date and how i paid / usually by card and how much.

when you do your landlord accounts it all goes down as one figure anyway ie total cost of maintenence for the year and not individual repairs and if you have a few propertys just one combined figure .

dllive

Thanks so much guys. This is very helpful.
I thought I would have to evidence all of this work (before/after shots etc) 'just in case', but seems that might be a bit OTT. I will certainly (as I currently do) make records of what Ive paid, to who, date, and from which bank account.