What Expenses Can I Claim Against Rental Income?

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    What Expenses Can I Claim Against Rental Income?

    My father died and left me a rental property.
    The property was in a really bad state of repair (as my father hadn't spent any money on it for the last 10 years!!) and I had to make the following repairs:
    1. Replaced the boiler and radiators.
    2. Have every room skimmed and then redecorated including some rooms where I had to have the plasterboard replaced.
    3. Replaced the carpet.
    4. Replaced the fridge freezer.
    5. Have a leaking roof repaired.
    6. Some new wiring and new sockets and switches.

    In an all it has cost me nearly £9000.

    I remember reading somewhere that you can claim for some types of repairs and others you could only claim for when selling the property.

    Please would someone be kind enough to tell me what I can claim against rental income for the current tax year and what I should claim as a capital expense when I sell the property?

    Thanks

    Sol

    #2
    Furnished or unfurnished?

    Comment


      #3
      The property is furnished.

      Comment


        #4
        1, 2, 5 and 6 are repairs and can be claimed as an allowable deduction from rental profit.

        The cost of replacing the carpets will be covered by the 10% annual wear and tear allowance.

        If the fridge freezer is fitted in a similar fashion as a cooker would be, then the replacement will be a repair. If standalone, then it will be covered by the 10% annual wear and tear allowance.

        Comment

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        • 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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          24-05-2022, 11:16 AM
        • Reply to Is it an allowable expense or capital expense
          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.
          It would affect the value of the property, but only to restore it to the level that it was at prior to the damage (plus the general positive effect of any large maintenance work).
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