Is changing carpets to laminate flooring tax deductible?

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    Is changing carpets to laminate flooring tax deductible?

    Hello,

    Carpets in a let property has worn out and I am considering to replace it with laminate flooring.
    Could anyone advise if this will be tax deductible (assume this won't be considered as improvement)?


    Thank you.

    #2
    I'd have thought the tax man would accept this, as long as you don't take the mick with quality upgrades.

    Comment


      #3
      if the flat is in a house conversion, the sound insulation between floors is non-existant . So carpet replacement may be necessary.

      If the flat is in a purpose built block and having concrete floors, then make sure there is adequate sound insulation material under the laminate.

      Comment


        #4
        I would say yes this is simply like for like replacement.

        Comment


          #5
          The replacement of domestic items relief should apply; https://www.gov.uk/hmrc-internal-man...manual/pim3210. However, if the cost of replacing the carpet is £500 and the cost of laminate flooring is £1,000, you should only be able to claim the £500 since the laminate would then be treated as an improvement.

          Comment


            #6
            Originally posted by TaxAntics View Post
            The replacement of domestic items relief should apply; https://www.gov.uk/hmrc-internal-man...manual/pim3210. However, if the cost of replacing the carpet is £500 and the cost of laminate flooring is £1,000, you should only be able to claim the £500 since the laminate would then be treated as an improvement.
            That's not correct.

            While it's not exactly like for like, one conventional floor covering is being replaced by another.
            Some incidental improvement is likely (as with any replacement) - the "improvement" wouldn't affect the value of the property materially.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              Originally posted by jpkeates View Post
              That's not correct.

              While it's not exactly like for like, one conventional floor covering is being replaced by another.
              Some incidental improvement is likely (as with any replacement) - the "improvement" wouldn't affect the value of the property materially.
              That depends on how you choose to interpet HMRC guidance:

              However, where the new item is not substantially of the same standard/quality as the old item, the deduction is equal to the lesser of:
              • the cost of the new item
              or
              • the cost that would have been incurred if the old item had essentially been replaced like-for-like.

              Where the costs are similar, I'd agree that it is like for like, but if laminate or wooden flooring costs, as in my example, double what a direct like for like replacement would, then the guidance and legislation points to an element of improvement.

              We all know HMRC don't have the resource to police this although I'd have reservations about making statements that fly in the face of HMRC guidance and ensure clients are aware of a potential risks.

              Cash is also king, so landlords will always choose cost effective solutions and most laminate isn't a million miles away from what a carpet costs and in some cases, actually cheaper.

              Comment


                #8
                OK, that makes a lot more sense.

                The HMRC guidance is focussed on improvements like new rooms or new bathrooms rather than more mundane changes.

                I would probably focus equally on the amount of the difference rather than the ratio - £500 is neither here nor there for tax purposes, even though it's twice as much.
                For most people that's £100 in tax not paid.

                And I'm with you entirely on HMRC resources, routine reminders are late/don't happen nowadays.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  Funny how fashions change. Fifty years ago having fitted carpet had a social cachet, now everyone wants laminate flooring. I know it looks nice, but so do carperts. It is fine in a conservatory with cane furniture, but it makes a lounge look clinical. It also increases your central heating costs.

                  Comment


                    #10
                    Yeah I prefer carpet too, but the rate at which tenants seem to be able to destroy carpet compared to laminate.....

                    Comment


                      #11
                      I find that using expensive and long lasting underlay under cheaper carpet works best.
                      It feels nice and luxurious and insulates well, and replacing the carpet is less traumatic on the bank balance.
                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                      Comment


                        #12
                        Carpets are better for sound insulation between ground floor flat and first floor flat in old house conversions.

                        Comment


                          #13
                          If your lease says that the floors need to be carpeted then you got no choice. If it does not then you can and the noise problem is not your issue it depends on what is in your lease. Yes

                          Comment


                            #14
                            I have replaced carpet with laminate. And laminate with carpet.
                            within reason, the one small room would have cost £400 to carpet and cost me £250 to laminate.
                            The other, the laminate was so badly fitted, that We decided to replace it, because it was breaking up in the middle. The stairs carpet was also worn.
                            whilst in an independent carpet place, I enquired as to the cost of doing the bedroom as well. When I factored in 3 days for me to fit new laminate, plus the cost of the materials, it really made no difference.
                            both were factored into next tax return.

                            Comment


                              #15
                              Of course as my accountant likes to infer, where's the risk and what's the penalty.

                              it's interesting. We've had some interesting discussions about options. I want to ensure that I'm legal and above board and yet some options don't have a yes or no answer.

                              I work in engineering.
                              I do Failure Modes Effect analysis.
                              we estimate risk with a risk priority number
                              RPN=Severity×occurancexDetection
                              in this case
                              Severity is the cost of HMRC saying you've committed a mortal sin.
                              is it prison, or a suggestion that you should try harder to get it right in future ?
                              Occurence is the likelihood that HMRC will spot it.
                              10 being definately
                              1 being not at all
                              Detection. Is the ability for you to spot the error before making the mistake.
                              some tax law is so complicated that your accountant wouldn't understand it, and others like this is trivial and we all understand it.

                              So you spend £3k on laminate instead of £1500 On carpet ? There's a paper trail back to the fitter, who has a diary showing he went to a different address to fit half of it.
                              HMRC are going to go through your accounts if they find out, and they will find you wanting. It's not as bad as laundering drug money for a Cartel. So l ers say 6 for severity out of 10.
                              likely good of detection ?
                              very low call it 2.
                              Now if you had costs every year for £5k on a property renting out for £4.9K I'm sure thier computer woukd flag this. And it might go up to say 7 out of ten.
                              Now would your own accountant spot it ?
                              probably. Call it 5. Do you have an accountant ? Call it 10. There are no checks on your submission
                              RPN = 6x2x5 = 60
                              RPN =6×2×10= 120

                              now in Aerospace we action every RPN above 120.

                              could I live with doing my accounts in this way ? No. And yet I'm prepared to fly. Although not because C-19


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