Electrical appliances - taxable expense ?

  • Filter
  • Time
  • Show
Clear All
new posts

    Electrical appliances - taxable expense ?

    I've just been checking out HMRCs website for taxable expenses for landlords. It states:-

    These are typical maintenance or repair costs that you are likely to incur, and which you can claim against your rental income:

    replacing existing fixtures and fittings, such as radiators, boilers, water tanks, bathroom suites, and kitchens, but not electrical/gas appliances

    etc etc

    So this means a fitted oven won't be an allowable expense, even when the old one is broken, surely this is an essential item more so than kitchen cupboard space or a bench top???

    And what does HMRC class as an 'appliance'? Is it just kitchen appliances, or would it also be a fire and an elec shower too?

    Grrrr !!!

    Please provide a link to the web page.

    You are probably looking at the description of Maintenance and Repairs.

    There is a separate entry on the tax return for Renewals.
    This is where you claim for replacing items (from 20016/17 tax year).

    It is my understanding that replacement of built-in items, such as ovens and fridges, are considered a repair to the property, but replacement of free-standing items is not (but I could be wrong, and am happy to be corrected).

    See https://www.gov.uk/government/upload...notes-2017.pdf box 25 and box 36.


      The rules have changed recently and a lot of web pages with the details either haven't been updated at all or not done very well.

      Until last April (2016) it was not possible to claim as allowable costs for furnishings in an unfurnished property (furnished property had different rules).
      Free standing electrical items were typically regarded as "furnishings", as were carpets and curtains.

      The rules have now been unified for furnished and unfurnished lets and replacement furnishings are allowable.
      If you read further down the page quoted in the first post, there's an example of a replacement bed, which would also apply to a free standing fridge.

      The text that says that electrical items are excluded from maintenance/repairs is technically correct, but is now less than helpful without text that says "which are treated as renewals".
      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).


      Latest Activity


      • Reply to Switching mortgage to BTL and tax implications
        by Gordon999

        The taxman's method of calculating :

        Capital gain is the Sale Price ( say £200K ) minus Purchase Price ( say £130K ) = £70K capital gain.

        But buying and selling expenses are allowable and include the conveyancing cost : say £1K plus estate agent'...
        12-04-2021, 14:17 PM
      • Switching mortgage to BTL and tax implications
        by dotcotton999
        Evening all,

        I am currently looking to move house and also have a rental property that has around £200k equity in it.

        The rental house had consent to let and on a repayment mortgage and has 3 years to go until I can switch deals.

        I have spoken to a mortgage broker...
        08-04-2021, 19:52 PM
      • Reply to CGT and tax returns
        by Lots on
        Thank you for your kind words JP and the tips re using an accountant. Having been taxed at source all my working life this is very useful information. I will look round for an accountant. A friend of mine who is also a landlord as well as having a day job has one, so maybe a personal recommendation...
        12-04-2021, 10:04 AM
      • CGT and tax returns
        by Lots on
        Hello all, just need some advice re CGT. I have a house which I refurbished entirely, mostly in this financial year and I could start my tax returns on the 6th of April 2021. I spent nearly £30000. New kitchen and bathroom, re doing the garden, new flooring throughout ,total electrical re wire, re...
        02-04-2021, 09:46 AM
      • Reply to CGT and tax returns
        by jpkeates
        Thank you for your work in the NHS!

        I've found that the first sessions were the most valuable in terms of what could be saved, and the value has diminished slightly and the costs of the returns being done has stayed the same/slightly increased, so it feels like it's less worth it.
        12-04-2021, 08:28 AM
      • spreadsheet
        by jase222
        I been looking at spreadsheets to list my expenses and every template I find seems to allocate expenses per house ie 5 houses = 5 separate sheets whereas I just put everything down on one sheet.
        I would like to know if I have been doing it wrong all these years.
        ​​​​​​Any help...
        11-04-2021, 13:53 PM
      • Reply to spreadsheet
        by jpkeates
        I use one page of a spreadsheet for all the income and expenses and have other pages which automatically summarise the data property by property.
        12-04-2021, 08:24 AM
      • Reply to Switching mortgage to BTL and tax implications
        by jpkeates
        When you sell the property, you can't retain any of the equity, so that doesn't really make any sense to me.
        On disposal, the mortgage will end and have to be repaid.

        The value of the rental property when first let is also a limit to the amount of the loan against which interest can...
        12-04-2021, 08:22 AM
      • Reply to Switching mortgage to BTL and tax implications
        by dotcotton999
        Gordon999 thanks for your reply. In regards to CGT so if I was due to sell a house I could request to remove all the equity before the sale and wouldn’t be subject to CGT... that doesn’t seem right.

        In regards to switching my mortgage from repayment to and interest only... would I incur...
        11-04-2021, 19:31 PM
      • Reply to spreadsheet
        by Gordon999
        Its good to keep a separate sheet for each property because when you come to sell one house , you may want to show the rental and expenses records for one house to prospective buyers.
        11-04-2021, 19:08 PM