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Allowable expenses - improvements/repairs/replacements

25/04/2019 10:53:34
Hi,

I received an e-mail today regarding a webinar but I can never join these as they are always on while I'm at work but I did read about this forum so thought I'd ask here.

I currently rent out one property. Everything is going smoothly at the moment however I wondered in the case of improvements/repairs etc are any of the following allowable expenses?

1. The kerb at the front of the house is being dropped next month to allow the tenants to have some off road parking due to parking issues in the area. I will be paying a contractor to carry out the work and I have already paid the local council for a minor road works consent.

2. In the next 5-10 years we will probably have to replace the windows and have the house rough casted to keep it wind and water tight.

Obviously the kerb is going to be done soon so if that's an allowable expense, I can include that in my self assessment, however the 2nd point is just for reference for future as they will need to be done eventually.

Thanks,

Margaret
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Re:Allowable expenses - improvements/repairs/replacements

25/04/2019 13:39:44
Hi Margaret,

The cost incurred in dropping the kerb outside your rental property is capital expenditure and cannot be claimed as a revenue expense.

Further guidance regarding capital and revenue deductions can be found here:

PIM2030

The cost of replacing windows can be claimed as a repair if you replace the windows with the nearest modern equivalent.

Further guidance can be found here:

Income Tax when you let property: work out your rental income

Rough casting your property will be considered a capital expense and may be claimed against any capital gain arising when you sell the property.

Thanks for your question.

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Allowable expenses - improvements/repairs/replacements

26/04/2019 08:11:03
Hi, thanks for your reply. It seems to make sense now. I will keep receipts anyway in case we sell the property but good to know the windows would be an allowable expense.

Margaret

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