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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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We bought 2 properties in 2018. We did some preperations to

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Hello , we bought 2 properties in 2018. We did some preperations to let. Decorations in first property like new blinds, carpet underlayer, painting, smoke alarm and some little repairs. Then we bought another property which need some more upgrades: new kitchen and appliances, changing tilling in bathroom, new laminate floor (previous was laminate but worn a bit). Property bought in normal not reduced price, someone was renting it before so it could be let without changes. We decide to make up flat to todays standard with similar not expensive materials. We dont know it this all cost can be deducted from income.
Assistant: Which tax year is the deduction for?
Customer: 2018/2019
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

The point to consider is whether the property was clearly habitable before the work was done, so was capable of being let on its acquisition.

If the answer is Yes then expenditure incurred to decorate the property, replace laminate flooring etc would be allowable expense against rental income.

Upgrade the property to include new kitchen and appliances would be deemed capital improvement and allowable against capital gain.

You may find this article helpful.. look here

https://www.icpa.org.uk/portal/tax/pre-letting_property_expenses_-_tax_misconceptions

My aim is to give you a professional service. I hope this is helpful and answers your question.

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Customer: replied 6 months ago.
Hello
there is a similar example on that website
Customer: replied 6 months ago.
Example 1: ‘Doing up’ an apartmentLawrence buys a modest apartment from its owner-occupiers. The kitchen and bathroom are serviceable but ‘tired’; and the property could do with re-decorating throughout.Such expenditure is perfectly allowable against the property business:• the property was clearly habitable before the work was done, so was capable of being let on its acquisition;• the work would not significantly improve the underlying capital value of the property in the way that an extra bedroom might, or extending the kitchen; and• the new bathroom and kitchen fittings are of course much better than what they replaced but, critically, they are to a similar standard as the fittings they replaced when those previous fittings were new; (i.e. the comparison is between the quality of the items when originally purchased and fitted, rather than when they were about to be replaced after, say, a decade’s use!)

Thank you for your reply.

If you can demonstrate that replacing the kitchen is no more than replacing old parts and not remodelling the kitchen, then HMRC would accept it as revenue expense. If you were to spend say £10k on kitchen replacement then one would be tempted to treat it capital whereas a spend of £2k-£3k would fall within revenue spend.

I hope this is helpful.

Customer: replied 6 months ago.
ok, thank you. we paid 1.3K + 1.2 K appliances
Kitchen is same size and layout
Customer: replied 6 months ago.
what about
Plaster boards, new lights, pipes to reinsta sink and basin ?
Customer: replied 6 months ago.
wall switches?

Thank you for your reply.

Treat all expenditure as repairs and maintenace against rental income.

I hope this is helpful.

Customer: replied 6 months ago.
Thank you very much
i am very greatfull

Thank you for yourreply.

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