Tax Return - repair expenses

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    Tax Return - repair expenses

    Hi folks, I'm looking for a bit of guidance please.

    I have an unfurnished rental property. Tenant moved out in Jan 09, but the place was a bit of a mess and needed some work.

    I undertook a fair bit of repair work, some I did myself, some I used tradesmen for. For example:

    electrical repairs
    replastering
    replaced a damaged kitchen unit, worktop and some bits of skirting/dado
    painting & decorating
    added additional radiators to central heating
    new carpets
    new fridge/freezer/washing machine

    The whole lot came to about £4000. It's been rented out unfurnished again since July 09.

    I'm not sure what I can claim as repairs.

    I expect the additional radiators will be an improvement, so can't be claimed, but I'm not sure about the rest.

    Can I claim the repair work as repairs?
    Can I claim for the new appliances and carpets?
    Can I claim anything for my own time and fuel costs?

    Thanks for reading.

    #2
    My judgement on this would be that the first four items in your list, starting with electrical repairs, are indeed repairs which you can claim for.
    The fifth items (extra radiators) are as you say, an improvement, so you shouldn't enter it as expenditure.
    The last two (carpets and appliances) also can't be claimed for directly but they will presumably help you to obtain a better rent and if the property is offered as furnished, you will be able to claim the 10% (of rent) allowance each year.
    You can't claim for your own time (there wouldn't be any point anyway because you'd have to declare the income and pay tax on it) but you should be OK claiming something for fuel.

    Comment


      #3
      1. Do you have a letting agent?

      2. When did you acquire the property?

      3. Is the repair work all a result of repairing damage done by your latest T?

      Comment


        #4
        I didn't have a letting agent at the time, but I do now.
        I acquired the property in June 07.
        Some of the work was repairing damage (tenant disappeared with no forwarding address), some of it was long term wear and tear.

        I spoke to one of the techs at HMRC today and they've advised most can be claimed as repair, including replacing carpets as long as it was like for like.
        I should claim 40p/mile for car expenses, but can't claim for my own time.

        I didn't ask about appliances and extra radiators as I assumed they couldn't be claimed - probably should have asked to be sure.

        Comment


          #5
          Originally posted by johnjw View Post
          The last two (carpets and appliances) also can't be claimed for directly but they will presumably help you to obtain a better rent and if the property is offered as furnished, you will be able to claim the 10% (of rent) allowance each year.
          But it's not furnished, therefore he can't claim the 10%. However he should be able to claim for the cost of the carpet, providing it's just replacing a knackered one rather than upgrading the property

          Comment


            #6
            Replacement appliances are tax deductible provided they are no higher spec than the old ones.

            Your mileage is deductible for travel from the place of business to the property. If you have a letting agent then his offices are the place of business; if you do not, then it is probably your home. Hence 40p per mile.

            So, apart form the additional radiators, it should all be tax deductible.

            Comment


              #7
              Can someone validate Telometer's point that if mileage is allowable, the relevant distance is from the agent's address to the tenants’ address.

              If so I might look for an agent in Australia

              Comment


                #8
                Sorry, I was ambiguous. The MAXIMUM claim you can make is from the place of business to the property. Therefore if your agent is in Australia and you travel from London to Exeter, only London to Exeter is deductible.

                Comment


                  #9
                  Replacement appliances are tax deductible provided they are no higher spec than the old ones.

                  Are they deductable as 'repair' or do I need to include them some other way?

                  Thanks for the replies folks.

                  Comment

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