This is another revenue vs capital query, this time on doing up a home rather than newly purchased but-to-let.
Client moved out to live with a new partner and updated a tired fitted kitchen, rewired, re plastered, re carpeted etc at a cost well in excess of £20k before letting unfurnished. So no doubt it was a significant amount which raises a flag, but the property was perfectly habitable just not especially attractive tenants.
Often significant refurb expenditure prior to letting for the first time is treated as capital (Law Shipping). I'm sure this will be HMRC's initial assumption and it seems to be the prevalent 'advice' out there.
PIM2505 allows pre-letting expenditure to be deductible if it would have been so after the letting business commenced.
Have forum members had success with the view that rewiring, plastering, replacing fitted kitchen with similar etc be treated as delayed but ongoing maintenance of a functioning asset rather than as improvement/making fit for rental business?
As an associated thought, I'd hope the mortgage interest incurred during the refurbishment period was deductible as if on the first date of letting?