Revenue vs Capital Expenditure (again!)

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    Revenue vs Capital Expenditure (again!)

    Hi all,

    I am a newbie to this forum, so please be gentle!

    I have a property that I am letting out and in February, purchased another property to let out as well. For this second property, before putting it on the market, I rennovated it. Please note that the purchase price for the property was market rate, so wasn't in a state of dis-repair.

    Rennovations I completed:
    - Skimming 3 bedrooms upstairs
    - Painting whole house
    - New carpets for the house (replacing existing ones)
    - New bathroom suite (replacing like for like), including plastering in bathroom
    - New boiler (replacing 25 year old combi boiler with new combi boiler)
    - New radiators in most rooms
    - Brand new plug sockets in some bedrooms
    - Replacing old plug sockets with new sockets

    Could anyone please confirm which of the above items would be offset against revenue, and which would be against capital? I am not sure if having an existing property means that my "letting business" had already started, therefore these could all be offset against revenue?

    Thanks in advance!

    The boiler definitely comes down as Capital.


    Latest Activity


    • Reply to Is it an allowable expense or capital expense
      by AndrewDod
      Can't see any reason this would be an insured event. Agree it is not a capital expense at all....
      25-05-2022, 09:25 AM
    • Reply to Is it an allowable expense or capital expense
      by Another Fine Mess
      If you dont mind me suggesting, If your Insurance Company is rejecting your claim you could get in touch with a Chartered Loss Assessor who would argue with the Insurance Company Loss Adjuster, its worth a phone call to one.
      24-05-2022, 16:30 PM
    • Is it an allowable expense or capital expense
      by shipboard
      I rent out a single property, during the winter storms the brickwork was damaged and the cheapest option to repair it was to render the Gable end and rear of the property. I tried to claim on the insurance but they maintained it was due to wear and tear, I am of course disputing this. My question is...
      24-05-2022, 10:04 AM
    • Reply to Is it an allowable expense or capital expense
      by gnvqsos
      I think the insurance company were right-the render must have been distressed to suffer storm damage. You can offset cost against income.
      24-05-2022, 14:36 PM
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      by Gordon999
      Hmrc rules allow transfers between spouses without cgt. The recipient spouse takes on the asset at the original purchase price.
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      by Gordon999
      I agree with jpk : it is a maintenance expense which is claimed against rental income....
      24-05-2022, 11:12 AM
    • Reply to Is it an allowable expense or capital expense
      by jpkeates
      I'd say that's a maintenance cost and would be allowed against income.
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      24-05-2022, 10:53 AM
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