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Allowable expenses prior to letting?
marcosscriven
Posts: 81 Forumite
I’ve been reading about allowable expenses at https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income
However, it’s still unclear to me about whether certain things can be claimed just prior to letting out. To be clear, the property is in an excellent state (we currently live in it, and there’s photos by the agent we’ve kept), but we’re considering things like having carpets cleaned, tiles regrouted, and parts repainted.
Since we’re in the 40% bracket, whether that’s allowable has a massive effect on net cost.
Would it thus be better to go ahead with tenancy, and only get the work done afterwards?
However, it’s still unclear to me about whether certain things can be claimed just prior to letting out. To be clear, the property is in an excellent state (we currently live in it, and there’s photos by the agent we’ve kept), but we’re considering things like having carpets cleaned, tiles regrouted, and parts repainted.
Since we’re in the 40% bracket, whether that’s allowable has a massive effect on net cost.
Would it thus be better to go ahead with tenancy, and only get the work done afterwards?
0
Comments
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all would be normal repairs costs and so allowablemarcosscriven wrote: »we’re considering things like having carpets cleaned, tiles regrouted, and parts repainted.
the grey area is whether this is a property you currently live in and therefore whether any of those are due to your own occupation rather than in preparing to let - ie. they are not "wholly and exclusively" related to the start of the letting
if costs are not due to your own occupation you can claim then for up to the previous 7 years before letting
read:
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim25050 -
Perhaps it would help to tip the "grey" in your favour if you market it with the agent as-is and then "agree" certain redecoration as a condition of granting tenancy. Work can be carried out between agreement and move-in date.
It would create a more firm link to show that the expense was wholly and exclusively for the purpose of letting.0
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