Kitchen / bathroom replacement before first let

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Kitchen / bathroom replacement before first let

    I've checked the forums for a definitive answer but I can't find one specifically for this scenario:

    I have purchased a flat for BTL purposes - the kitchen / bathroom are useable ( if slightly dated / grubby ) and could do with like for like replacement to enhance future letting prospects.

    If I carry out the work now ( before the first let ) can it be considered as a fully taxable expense?

    #2
    Yes you can offset these cost against your revenue profit. Regards Peter

    Comment


      #3
      Cheers - if the work is carried out in Nov 2015 would the offset only be applicable to any profit in the current tax year ( ie up to Apr 2016? )

      Comment


        #4
        I'd leave the dated kitchen & bathroom, but make sure they were surgically clean.

        I bet you'll thank me when you get the flat back.

        Comment


          #5
          I would update them and reap the rewards of higher rent and fewer voids.
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

          Comment


            #6
            Originally posted by vaila_street View Post
            Cheers - if the work is carried out in Nov 2015 would the offset only be applicable to any profit in the current tax year ( ie up to Apr 2016? )
            You treat the costs as if they were incurred the first day the property is rented.

            You might want to think about the optimum dates - remembering that losses can also be carried forward if declared.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment

            Latest Activity

            Collapse

            • Reply to Things to consider when renovating, renting, and future capital gains
              by Phyllis
              Thank you both. Estate agent said little call for large rental property here and better return on two three bedroom properties. As far as refurbishment costs, I can figure out the cost of doing two separate properties over doing one and feel I can manage those. I don’t see need to separate the titles...
              21-11-2019, 03:53 AM
            • Things to consider when renovating, renting, and future capital gains
              by Phyllis
              I have inherited a property from my father. It needs TOTAL refurbishment and Is suited to conversion into two self contained, three bedroom flats. My plan is to rent the flats out once refurbished. I realise there are many things to consider and am finding it overwhelming at the moment. I initially...
              19-11-2019, 21:53 PM
            • Reply to IHT on property question
              by leaseholder64
              Not paying rent reinforces the reservation of benefits position.

              Whilst I believe it would be subject to the 40% marginal rate on that part of the £450k that took the estate over the allowance, my knowledge only really extends to knowing there is an issue in principle, and there may be...
              20-11-2019, 23:35 PM
            • IHT on property question
              by Bill31
              I have been living in my parents home for last 10 years and it is my primary residence. i dont currently own anything else.
              My dad passed away 3 years back and my mum removed his named from the deeds of property and added me as joint ownership with her 50/50 on land registry

              we live...
              20-11-2019, 13:46 PM
            • Reply to IHT on property question
              by Bill31
              Ok my mum does not pay rent to me if that matters.
              She originally bought the house for 80k with my dad back in the 90s. He passed away in 2012.

              The house was put as joint tenancy between me and my mum in 2016. Valuation then was around 400 to 450k.
              Now in 2019 house is worth...
              20-11-2019, 23:19 PM
            • Reply to IHT on property question
              by leaseholder64
              If it is a gift with reservation of benefits, her estate has to pay inheritance tax, as though the full market value, at the time it was gifted, were part of her estate (or you will have to pay the IHT if there is not enough money to cover it). Of course, it is possible that the estate is still within...
              20-11-2019, 23:02 PM
            • Reply to IHT on property question
              by Bill31
              Bit confused now. So maybe it wasnt a good idea to put the house in joint names with mother.
              If we sell the house to buy another house is the cgt implications for me?
              ​​​​​Or say if she passes will i have to pay cgt if i sell the house and move elsewhere?...
              20-11-2019, 22:55 PM
            • Reply to IHT on property question
              by leaseholder64
              Most of the material on this is US-centric, but I think the transfer was a gift with reservation of benefits, so fully within IHT. It's too obvious a loophole, otherwise.

              Also there is a risk that, if you get into financial difficulties, your mother will end up homeless.

              This...
              20-11-2019, 21:23 PM
            • Reply to IHT on property question
              by Bill31
              thanks jpkeates for the replies.

              i have a question. By adding my name to my mums main house where we live as joint tenants. what affect has this created on IHT ??(some people said to me i should not have added my name to the property)

              say my mum passes away in 6 years or...
              20-11-2019, 20:14 PM
            • Reply to IHT on property question
              by jpkeates
              There's no CGT on the property that is your main home.
              You both own the property and both live there, so it's not within the CGT regime - unless one of you moves out and it ceases to be your home before you sell it....
              20-11-2019, 18:39 PM
            Working...
            X