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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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if you buy a property to let out , then spend money improving

Resolved Question:

if you buy a property to let out , then spend money improving it before you let it to tenants, what allowances are there against the rent you recieve?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

As a general rule, if you were to spend money on improvements of a capital nature i.e expenditure that would enhance the value of the property when sold, then this expenditure would be available for offset against gains as additions to cost of purchase, at the point of sale.

Expenditure on repairs before the property is available for first letting would not be an allowable expense, unless you were in the business of furnished holiday lettings.

More information on what is allowable expenditure can be found here

https://www.gov.uk/renting-out-a-property/paying-tax

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.


Customer: replied 2 years ago.

The website you mentioned appears to relate only to England and Wales. Do the same provisions apply in Scotland?

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

The provision for allowable expenses for tax purposes is the same throughout the UK.
If you follow the link on the right for renting out your property in Scotland, you will see the provisions for allowable expenditure are common.

I hope this is helpful and answers your question.
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