Rented Property Refurb

Rented Property Refurb

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It is a retail shop.
I have purchased signs, mirrors, shelving, counter etc
I have decorated, rewired, replaced lighting etc
I have put stud walls up to house clothes rails.

Is this correct - ?
signs etc - fixed assets on which i can claim capital allowances.
decorating etc - repairs which i can deduct from profits.
Stud walls - fixed assets on which i can claim capital allowances?

As a rented property if i undertook some capital expenditure where capital allowances were not given (ie. enhancements) - how do i get tax relief?
Bill

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By AnonymousUser
16th Mar 2006 15:17

Depends
Redecorating costs incurred by a landlord in a void period between tenants are allowable as running costs. However if you are a tenant and redecorate the shop before you start trading or the landlord does so before he lets it out then redecorating costs will be treated as a capital cost ie an expense incurred to put you in a position to start trading or the landlord to rent out the shop.

There is similarly no tax relief to you as tenant for the stud walls or anything else which does not qualify for capital allowances. To argue that the stud walls are plant may be possible but is not going to be easy.

You will get no capital allowances on the basic rewiring but specialised lighting (one assumes you are a clothier, beautician or hairdresser) does qualify as plant for capital allowances purposes. You will need an accountant in due course so get one now. Ask around (amongst people whose businesses are of similar size to your own) in order to find a good local firm where they understand the small businessman/woman. You may even be able to do a deal with the landlord with the appropriate help.

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