Hi,
A flat which I will be letting out shortly had a relatively large major works charge applied to it (>£45k). The charges will be split over 7 years to allow some repayment period to leaseholders. Given the scale of the project, the nature of the works is varied, about 20% of the charge relates to fixing structural issues (recladding bricks really due to "reported" safety issues), with the reminder being largely accounted by redecoration/jet washing of walls/concrete repairs/replacing damaged balustrade frames, etc.
I understand that in no way "jet washing" or redecoration can be classified as any improvement, and therefore majority of costs I would classify as allowable, even though they relate to the larger block itself and are in the category of "major works". In addition, I am also inclined to include the structural costs - these again are not improvements, but rather repairs, as otherwise in my mind the building would have been unsafe - therefore they are bringing it only to a usable state.
Looking online I find contradicting information about these items, but logically (being an accountant, not a tax expert though) I would always classify these as allowable.
If someone has any similar experiences then I would appreciate your views.
Thanks
A flat which I will be letting out shortly had a relatively large major works charge applied to it (>£45k). The charges will be split over 7 years to allow some repayment period to leaseholders. Given the scale of the project, the nature of the works is varied, about 20% of the charge relates to fixing structural issues (recladding bricks really due to "reported" safety issues), with the reminder being largely accounted by redecoration/jet washing of walls/concrete repairs/replacing damaged balustrade frames, etc.
I understand that in no way "jet washing" or redecoration can be classified as any improvement, and therefore majority of costs I would classify as allowable, even though they relate to the larger block itself and are in the category of "major works". In addition, I am also inclined to include the structural costs - these again are not improvements, but rather repairs, as otherwise in my mind the building would have been unsafe - therefore they are bringing it only to a usable state.
Looking online I find contradicting information about these items, but logically (being an accountant, not a tax expert though) I would always classify these as allowable.
If someone has any similar experiences then I would appreciate your views.
Thanks
Comment