Redecorating after tenants have moved out

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  • Telometer
    replied
    Originally posted by TaxationPete View Post
    It all sounds like maintenance and repairs to me. Tell us what you intend to do with the property. Regards Peter
    Disagree strongly.

    Laminate flooring and carpets are not, in my view, interchangeable for tax purposes. The laminate flooring becomes a part of the property; the carpets do not. The VAT treatment and CIS treatment of the two are completely different, which I think backs up my view.

    Adding curtain fixtures where there were none before is clearly capital.

    Replacement kitchen cabinets where there is no element of improvement is repairs.

    Leave a comment:


  • mind the gap
    replied
    Replacing a worn carpet with laminate flooring is arguably a capital improvement.

    You need a dated invoice showing how much you paid to whom and for what. Is that what you meant?

    If you replace broken cabinet doors with new ones of a similar quality and type, that's a repair. If you upgrade to more expensive better quality ones, that's capital expenditure.

    There's no obligation to provide curtains or blinds, although most landlords do as tenants usually prefer it - if you don't know how long you'll be in a place, you don't want to be paying out for curtains and blinds you might not be able to use in your next home.

    Leave a comment:


  • kosmicmisfit
    replied
    Originally posted by kosmicmisfit View Post
    Thanks I will be renting it out
    also what type of invoice needs to be produced for to be tax compliant?

    Leave a comment:


  • kosmicmisfit
    replied
    Thanks I will be renting it out

    Leave a comment:


  • TaxationPete
    replied
    It all sounds like maintenance and repairs to me. Tell us what you intend to do with the property. Regards Peter

    Leave a comment:


  • kosmicmisfit
    started a topic Redecorating after tenants have moved out

    Redecorating after tenants have moved out

    The tenants finally moved out.

    I have had the house has been repainted.

    I also plan to remove the carpets in bedroom and sitting room and replace it with laminate flooring. Does this count as a expense of capital improvement?

    The windows had blinds in the bedroom and nothing in the lounge. Kitchen didn't have any window fixtures. I plan to add net curtain and curtain fixtures in bedrooms and lounge and roller blinds in the kitchen. Does this count as a expense of capital improvement?

    Do I need to provide net curtains and curtains?

    Also the kitchen cabinet doors (3) have come off their hinges. Worst case would mean replacing the cabinets. Does this count as a expense of capital improvement?

    Your ideas and advice will be useful.

Latest Activity

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  • Let Property Campaign.
    by armour
    Hi all,

    A friend of mine has been renting out a flat since 2004 and has not declared any of the income to HMRC in all that time.

    She wants to come clean and pay the accumulated income tax she owes by making a non-prompted disclosure using the Let Property Campaign system....
    13-09-2021, 13:45 PM
  • Reply to Let Property Campaign.
    by jpkeates
    The 10% was for furnishings, so built in stuff should be ok to claim.
    The bathroom refurb depends on what was done if it was simply a replacement, it's maintenance, if it was a significant upgrade, it's likely to be part capital/part maintenance.
    If it's a new bathroom, it's probably ca...
    16-09-2021, 08:37 AM
  • Reply to Let Property Campaign.
    by armour
    Seems pretty clear there JP. I'll go ahead and alter my calculations

    One more thing, My friend had a bathroom refurb and a built in oven and hob replaced during the period when the flat was let furnished. I'm pretty sure that these costs can be detucted in addition to the 10% W&T, but...
    15-09-2021, 14:06 PM
  • Reply to Let Property Campaign.
    by jpkeates
    The wear and tear allowance was 10% of the rent before any deductions.

    The only exceptions were always poorly understood and were always a little odd.
    You had to deduct items which would normally be borne by the tenant but, for some reason, weren't.
    So, if the landlord included...
    14-09-2021, 11:57 AM
  • Reply to Let Property Campaign.
    by armour
    Hi again,

    The deed is done. My friend registered for the Let Property Campaign scheme an hour ago.

    The next step is HMRC sending her a disclosure number by post within 14 days.

    As I am trying to sort out her tax liability over the past 16 odd years, I'd appreciate...
    HiI understood that 10% wear and tear on profit is income less costs i.e. all costs relating to the property (Mortgage Interest, Management costs, rep
    14-09-2021, 11:25 AM
  • Reply to Let Property Campaign.
    by armour
    Thanks for the replies.

    JP, I think my friend wants a clean break with HMRC rather than fighting it to minimise her tax bill as you suggest she could do. In any case, what with higher mortgage interest rates and her eviction costs in the early years, the tax liability prior to around 2010...
    13-09-2021, 18:17 PM
  • Reply to Let Property Campaign.
    by Gordon999
    Has your friend lived in the property at any time ?

    Does your friend's annual income from " job plus rental property" exceed the annual personal allowance, during each of the last 6 years.?

    Does taxable income come under the 20% tax rate each ye...
    13-09-2021, 14:37 PM
  • Reply to Let Property Campaign.
    by jpkeates
    The whole idea of the campaign is to collect the tax and not penalise people who come clean too much.

    Personally I'd use an accountant, because I don't think HMRC can normally go back much further than six years, so there's possibly a trade off of six years tax plus possible hefty penalties...
    13-09-2021, 14:24 PM
  • CGT calculation
    by armour999
    Hi all,

    This will probably be a bit incoherent so apologies in advance.

    A friend of mine has asked me to work out her CGT liability for a flat she is selling. The bare facts are these:

    She bought the flat in May 2000 at a purchase price of £78,000. The completion...
    11-09-2021, 17:50 PM
  • Reply to CGT calculation
    by armour
    Thanks all. It seems I had a couple of errors there, thanks for pointing them out.

    There is more to this though. Please see my next thread titled 'Let Property Campaign'.
    13-09-2021, 13:46 PM
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