Refurb of holiday cottage

Refurb of holiday cottage

Didn't find your answer?

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)

Please login or register to join the discussion.

avatar
By blok
13th Jan 2012 19:45

.
It depends on what the money was spent on. "refurb" is quite a generic term.

Thanks (0)
avatar
By TaxationPete
13th Jan 2012 20:33

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

Thanks (0)
Chris M
By mr. mischief
13th Jan 2012 20:51

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.

Thanks (0)
Chris M
By mr. mischief
13th Jan 2012 20:54

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!

Thanks (0)