Can I declare expenses for this year under the previous year's tax return?

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  • Can I declare expenses for this year under the previous year's tax return?

    I made some floor plan alterations to my flat last year. At the time, I was totally ignorant of a clause in the Lease which required that I make an application to the Landlord for a Licence. I later wrote to the Freeholder to inform him. He was very relaxed and suggested I make a retrospective application which I am now doing.

    My question is am I allowed to declare the cost of the Licence together with surveyor and solicitor fees to the tax officer as part of last year's tax return (2010 to 2011) or must I declare it under the current year (2011 to 2012)?

  • #2
    Do you live there as your home, do you rent it, or rent it out or what, it is not at all clear. At waht date were the costs incurred. Regards Peter


    • #3
      The floor plan alterations were carried out and paid for in 2010/2011. At the time, it was a rented property. But a few days ago, I moved back in to the property as my main residence.

      The work in relation to the the Licence, surveyor and solicitor fees are being carried out now and are due to be paid end of this month or start of May.


      • #4
        Well the actual work may be deemed as enhancements and be deductible but from the CG, You need to tell us what you have actaully done to the property. However the legal and surveyor costs may have to offset against CG when you see the property. Do you intend to re-let the property. Regards Peter


        • #5
          The large living room has been divided with a stud wall to create a kitchen. The original kitchen area has now been converted into a bedroom.


          • #6
            That is clearly structural in nature so it is Capital Enhancement. You do not say if you are going to re-let it. Regards Peter


            • #7

              Dark Lender, you would be advised to start your own thread, imaging if 4 or 5 different posted asked questions in the same thread. Very confusing. If you replaced a tile roof with a new tiled foor is would be revenue. If you had replaced some flat felted areas with timber and tiles then that would be capital. Regards Peter


              • #8
                For the time being, I'm living in the property with no view to re-letting.


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