Hi,
I neighbour has asked me to help her with her self assessment due in a couple of weeks.
The story goes:
She bought the 2nd property about 15 yrs ago but mid 2008 she decided to start letting it through an agency. She did a big refurb costing £15k however she has not submitted a tax return for the 2 yrs. The property makes a tiny profit.
My question is what can be claimed back with regards the £15k refurb?
Thanks alot any help would be greatly appreciated.
Replies (4)
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When w\s the refurb done, prior to letting or after. This may be deemed as capital and only accountable for on disposal. Regards Peter
FHL?
Also whether it is a qualifying FHL makes potentially a big difference. Note that the goalposts on this have been moved in last 2 Budgets.
example
Example (I am in the Lakes so lots of FHL clients)
One very disappointed client this week, who has spent a load on a renovation, much of it claimable under plant and about 40% of it non-claimable as improvements to the building.
Problem - he's delayed things so only started letting it in 2011-12 tax year. Had it been a qualifying FHL as planned during 2010-11 then any loss could have been relieved against earned income, no longer.
So now he can only carry forward, plus the tougher FHL conditions for 2011-12 mean it may not even qualify until 2012-13! Double whammy!