Hello
If a private leaseholder is contributing to a sinking fund, are those contributions deductible from income tax if that leaseholder is letting out their property on an AST? If not, is it deductible from CGT upon disposal of the property?
Thank you
Replies (5)
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The tenants are putting aside monies
for repairs in the sinking fund.
It will be allowable when the repairs are made and the funds paid out of the sinking fund. At that point there will be allowable repairs to be claimed but no cost (one wold hope) because they have funds set aside in the sinking fund
It depends whether
they can include an allowable provision for repairs under general accounting principles or not.
If they can, yes. If it is only a general provision for future repairs, then no