Hi
Got a client who was left 50% share in his parents home, decided to buy the other 50% from his brother and now owns 100%.
He has conmpletely refurbished the house from top to bottom, as it was quite out dated.
Can some one please give me an indication of whether or not the following items will be classed as repairs or improvements as i am reading various conflicting articles on the net.
1. Windows/Doors
2. Re-wire (electrics)
3. General building works, plastering etc
4. Flooring
I know that if they are classed as repairs they can be offset against income received and if they are improvements they are carried over until the property is sold.
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Replies (2)
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Rental Business started yet?
I think that if he has not started to rent out the property yet there is no income to offset any repairs to, so all the works are improvements prior to letting, so capital.
start with...
http://www.hmrc.gov.uk/manuals/pimmanual/PIM2505.htm
And work from there.....depends on the type of expenses but there is likely to be at least some that can be claimed as revenue rather than capital.