What is tax deductible from getting property ready to rent - grey areas....

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    What is tax deductible from getting property ready to rent - grey areas....

    Hi All. I'm new here.
    I have been letting a property for the last 3 years and the tenants have just moved out. Sadly they didn't leave it in a very good state and it needs complete refurbishment before I can rent it again.
    I am aware that I can claim against the revenue for the paint, emulsion, damaged pane of glass, and missing bath panel. I am a little confused over the kitchen and carpets though. Everything I've read said 'improvements' cannot be claimed back. It definitely needs a new kitchen and carpets before I can let it out, but a new kitchen and carpets throughout are clearly going to increase the property value and 'improve' the property. These will be the biggest expenses of all - so can I claim on these?

    Also completely different questions - I lived in the property for several years before renting it out, and now it has just gone over 3 years allowance so will one day be liable for CGT. I spent £14k buying my ex out at the top of the market in 2006, then continued to live there for a few years. Will the £14k which was added onto the mortgage at that point be deductible, or will they expect me to pay CGT on this £14k aand only take into account the original amount myself and my ex bought it for?

    Any help much appreciated.

    If tenant damaged the place you should get costs from deposit and/or tenant, maybe needing court action..

    Is ph33 Lochaber?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


      1. If the New Kitchen and Carpets are clearly improvements over existing items , you could charge 50% cost against revenue and record 50% cost as capital for future reckoning. The other items you mention are just repairs

      2. Your capital costs ( upto present time ) will be the Property Buying Cost + 14K Cost + 50% x Improvement cost ( Kitchen + Carpet )

      3. The period of "owner residence" + 3 years after moving out will be free of CGT. You can also claims lettings relief up to 40K so you may have a further 3-4 years renting before any liability to CGT


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