Residential Property Lettings Expenditure

Residential Property Lettings Expenditure

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Whilst not a material item of expense, anyone with experience of a stipulation under the Housing Health & Safety Requirements with a client letting a residential property where the tenants had learning disabilities.

It was stipulated that a high spec fire and smoke detection system be installed, costing £375. Not material, I agree.

Property first let May 2011, but after the six months initial period the tenants quit.

Subsequently the property has been re-let to another tenant to whom the above requirements do not apply.

Tax treatment? Anyone come across this before?

Thanks in advance.

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By tladirect
01st Jul 2012 08:37

WG,

The Housing Health & Safety Requirements are not really an issue insofar as I doubt anyone would challenge the need for fire/smoke alarm equipment to be installed in a residential property - particulary one that is let.  Indeed, the presence of such equipment will be a factor in an insurer setting the buildings insurance premium.

£375 is more expensive than DIY battery alarms, which, although widely used to provide basic protection, tend not be be recommended by the various "residential landlord schemes".  Thus, you are likely to find that a minimum "decent" system will comprise mains interconnected, wired, fire and smoke detectors - at least one on each floor.  You will not be surprised that the cost of having such a system installed by a qualified electrician will not be less than a few hundred pounds anyway.

As far as tax treatment is concerned, although it is essentially capital expenditure, materiality - as you point out - is a consideration.  I suspect that whether it is treated as revenue or capital expenditure, there will be little controversy.

I hope this is useful.

tladirect

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