Blog: Hi everyone. I am a new user to this forum and would like to say a bigup to all the homeys in the house.
My question is this - my tenants are moving out in a couple of weeks and I am thinking about improving the house before reletting. Specefically, the house needs double glazing, new carpets, and basic redecoration. .
Can I offset all these costs against the rentals I hope to get this year? .
Blog Reply: Oh no double glazing!! .
Okay, if the work is replacement (like for like) then you can offset against rental income. If however it is improvement you can only offset against capital gain. .
Double glazing is always the traditional bug bear - some see it as essential replacement and others see it as improvement - even the Inland Revenue can't agree on this one. .
Best thing - get the work done you need to and then speak to your accountant. .
Check out .
http://www.inlandrevenue.gov.uk.
Regards.
Blog Reply: I had a meeting with my accountant today and one of the issues we discussed was what are capital and revenue expenses. .
He says there was a test case in the last year which the revenue lost and as a result double glazing and central heating installation can now be regarded as revenue expenditure. .
Blog: Thanks guys..... you have a good accountant cos i asked my one the same questions and boy did I get some vague answers!! .
I would be replacing rotting wooden frames with cheap (but durable) PVC. besides I have to go with this as new laws state that double glazing has to meet certan requirements.Can the revenue still have the cheek to call this improvements instead of repairs? .
Blog Reply: The new building regs state that you have to install double glazing therefore the IR will have difficulty claiming it is an improvement. .
