Allowable expenses / carrying over losses

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    Allowable expenses / carrying over losses

    Due to damages / issues left by ex. tenant teamed with normal wear and tear my property is empty and needs a mini refurb from top to bottom in order to be able to re let and quotations have been circa 14k all in.

    Can this be claimed as expense (decorating, retiling, new flooring, new toilet and basin, new fridge freezer, new modern fuse board & Electrical safety cert)

    2020 - 2021 tax year so far:

    Income:
    £4950.00 April - Sept rent

    Expenses:
    £420.00 Agent fees
    £110.00 Boiler service & gas safety cert
    £900.00 New fence
    £1430.00

    With above considered this year will certainly be a loss even if I could get works completed and property re let after xmas to achieve a couple of extra months rental income.

    Can I carry the loss over to tax year 2021-2022 and if so are there any limits?

    Also any other advice that could benefit how I approach ?

    #2
    I'm sorry about your loss

    Yes all seem claimable although what exactly is the 14K - some may be capital expenses

    Yes you can carry losses forward

    No there is no limit

    Comment


      #3
      Assume possibly a combination with some capital gain??



      Breakdown of works as per below list from a quote. Some work was planned anyway at end of tenancy and some is required as a direct result of last tenancy.



      £14k quote as below:

      Internal Decoration throughout, White Ceilings, White Walls, Satin White Woodwork.- All walls painted bold colours without consent, all walls heavily marked throughout (well beyond fair wear and tear)

      Replacement fridge freezer - Ex. tenant removed without consent

      All doors change for 6 Panelled doors White Grained, door to Garage Flush. - All damaged by ex. tenant

      New Coving In Lounge - refurb planned due to property age

      Lounge strip Wallpaper - refurb planned due to property age

      Bedroom strip Wallpaper - wallpapered without consent (bright pink with large pelicans)

      Bathroom, New Basin, Mono Bloc Tap, Toilet and Bath Panel all White - All damaged by ex. tenant

      Tiles Remove and Replace with 6x6 White.- Refurb due to property age

      Bathroom Floor Vinyl - Refurb due to property age

      Kitchen. New Worktops, Stainless Steel Basin and Mono Block Mixer - Trashed by ex.tenant

      Strip and Retile Walls White - Refurb due to property age

      Do best to level Unit doors - All hanging off hinges (not through fair wear and tear)

      Floor Vinyl and into Utility - Laminate floor badly chipped and completely rotted through due to ex. tenants actions

      Garage Ceiling Reboard and Emulsion - Sections missing due to ex. tenant (doing ??)

      Front Bedroom small re carpet Neutral - Ex. tenant removed fitted carpet without consent

      Clean Fascia / soffit and guttering - - Property maintenance

      Fix side Gable - Property maintenance

      Remove Rubbish. Price Labour and Materials


      Costs not included in above £14k quote:

      £ 150.00 Replacement oven
      £1400.00 Fitting extractor fan, replacement fuse board & Electrical safety cert
      £ 480.00 TPO application and permitted tree works
      £ 420.00 Agent fees
      £ 110.00 Boiler service & gas safety cert
      £ 900.00 New fence
      £3460.00

      Am I correct to think that expenses I can claim in tax year and capital gain expenses I just keep a record of up to a point in the future when I sell???

      Comment


        #4
        Take some photos of the trashed condition of property in case you are asked to show proof and claim the entire cost under repairs except for items which are new or improved ( didn't exist before).

        You will have to complete a tax return for each year and enter the amount of loss you want to carry forward to next year. .

        Comment


          #5
          Ive recalculated properly and if the property is not let for the remainder of the tax year I will have had an income of £5056.00 with expenditure of £15,710.00.

          Looking forward if I rent out for 12 months of tax year 2021-2022 and carry over losses from 2020-2021 I will again have a year with losses - albeit significantly lower. Can I then again simply carry those losses through to 2022-2023?

          Comment


            #6
            You can carry losses forward indefinitely (or until they run out).
            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
              Yes, you can.

              Comment


                #8
                Thank you for all replies and info.....much appreciated.

                Comment

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