Property Expenses - Allowable

Property Expenses - Allowable

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An overseas client has a UK propery which si let out.  It is a substantial residence with a passing ren in excess of £1,500 per month. 

While he was last in the UK he attended a seminar by a local accountant who said that bathrooms were fixtures,and that replacement of such fixtures were repairs and thus allowable against the rental income.  On this basis, and without consulting me, he has gone ahead and spent £20,000 on refurbishing the main bathroom in the property..I have to admit to only allowing him the replacement of the bath, toilet etc and not the fancy Italian floor tiles, marble tops or redecoration costs.

Would be glad of others views?

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By Manchester_man
22nd Oct 2014 18:23

Sounds like it was NOT replaced 'like for like', but upgraded in order to increase value and therefore this would be capital. I'd look at every element and see if some things like toilet etc as you say, can be classified as revenue.

The question is, was it replaced like for like or did significant enhancements take place.

Why on earth would he spend 20k on a bathroom suite?

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By Portia Nina Levin
24th Oct 2014 12:44

Draft guidance?

The draft guidance was actually incorporated into HMRC's manuals in December 2013. It just did not all make the final edit.

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By MJShone
24th Oct 2014 12:53

I stand corrected by PNL!

Oops! updated on 10 December 2013.

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