Unfurnished Lettings Expenditure

Unfurnished Lettings Expenditure

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New client with one let property.  Unfurnished. First letting.  I wasn't around on purchase.

Property was purchased in a reasonable state, requiring very little repair work pre-letting.  Except for two items......

£638 paid to move the electricity meter from kitchen cupboard to outside locker. The only reason was to facilitate meter readings without banging head on work surface.

£1995 paid for new fencing in back garden. Old fencing was broken in part and could have been repaired like for like, but this is a complete re-fencing all round the garden and of a totally different type from the old.

Client would love to hear these are repairs, and so would I- but I fear the meter is for convenience and negates repair. Also as the new fencing is vastly different from the old, again I fear "improvement" and therefore capital applies to both items?

Any comments greatly appreciated.

Replies (6)

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By pawncob
23rd Sep 2014 11:45

50/50

You can justify the meter movement on Health & Safety grounds. (or  Security)

If you're letting to a family, the same could apply to the fencing. If the old style of fence was unsuitable for containing small children/pets or animals, an upgrade could be justified.

 

 

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By Liz D
23rd Sep 2014 12:13

surely neither allowable

If its pre-let then surely neither are allowable.

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By WallyGandy
23rd Sep 2014 13:44

Thanks for the replies so far- great point Pawncob. On that basis I'll see what the client says.  Sadly the property has been let thus far to single people and there's a "no pets" clause.  The client is very honest and may not run with it.

Liz D- thanks for replying, but have a look at PIM2505.  Seven years!  

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By Liz D
23rd Sep 2014 14:14

Thanks for update

Thanks WallyGandy for info.  That's why I like this forum always learning something new. 

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By King_Maker
23rd Sep 2014 14:53

My initial reaction is that the re-siting of the meter is revenue, but capital for the fence if a significant improvement. How much "extra" for the improvement?

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By WallyGandy
23rd Sep 2014 15:56

Hi Kingmaker- from what I can gather the old fence was an amalgam of post and rail and a bit of mesh.  Hadn't been upgraded for some time, but it would have merited repair for let property purposes.  And client's partner is quite a handyman.

The full area was re-fenced by new posts and wooden panels.  Completely different appearance and height,  From the get-go I was thinking capital/improvements for this very purpose. I'd think you'll agree. 

Re the meter- I'm awaiting client instructions, but I now feel stronger that this is revenue expenditure as I can't see any element of improvement and for years all new houses have the outside cupboards for energy.  

Thanks again for your response- anyone else?

 

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