Expenses deductible against taxable rent received?

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    Expenses deductible against taxable rent received?

    I have been left a property which i intend to rent out, unfurnished
    I have spent £7,000 from my savings installing a new kitchen, bathroom, flooring & making good (painting etc.)

    If i generate £8,000 in income in my first year, can I offset this aginst the expenditure i have laid out?

    I am also liable to pay child support to my ex. where does all this fit in?

    This has been addressed many times recently on this forum so scan down the titles for information. Basically they are deductable from your rental income and any profit, after all expenses, gas safety cert (compulsory) maintenance and repairs agents fees if you use one, then that can be apper to you normal salary so it may be reflect in your child support to your ex. Regards Peter


      I recommend getting hold of HMRC's booklet IR150 on the taxation of Rents.

      Unfortunately, it is obsolete, having been subsumed into HMRC's Property Income Manual (viewable on line).


        Originally posted by TaxationPete View Post
        This has been addressed many times recently on this forum... Basically they are deductable from your rental income Regards Peter
        It has indeed been discussed many times recently, and all too often - as above - the wrong advice has been given. Unfortunately these costs are NOT deductible against income - they form a part of the capital acquisition cost of the property.

        HMRC tells us at http://www.hmrc.gov.uk/manuals/pimmanual/PIM2020.htm

        Other examples of capital expenses include:
        the cost of refurbishing or repairing a property bought in a derelict or run-down state,
        So your new kitchen, painting, flooring etc. is NOT deductible.


          Originally posted by Telometer View Post
          they form a part of the capital acquisition cost of the property.
          Strictly that should have said "they EFFECTIVELY form a part of the capital acquisition costs. Strictly it is enhancement expenditure, but there is no difference from your perspective."


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