Furnished letting and repairs

Furnished letting and repairs

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My limited company client lets out furnished UK residential property. The 10% wear and tear allowance is claimed.

Is installation of wooden floor and sound insulation a revenue expense or a capital item? Carpets have been taken up and then the wooden floor has been laid over the existing floor.

I suspect both the wooden floor and the sound proofing are capital items and so added to the cost for capital gains purposes but would be grateful for views. My client is bound to query it.

This previous post seems to confirm this:

https://www.accountingweb.co.uk/anyanswers/question/repair-or-not

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By TaxAngel
06th Jul 2014 19:00

Capital

It is capital - no element of repair or maintenance, clearly improvement (soundproofing).

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