Repairs allowable on cessation?

Repairs allowable on cessation?

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Client owns a property which has been let for a few years (his only source of letting income). The tenant has just left and the client intends moving in (as main residence). The schedule A business will therefore cease. Significant repair works need to be carried out. Will the repair expenditure be allowable as an expense of the letting business? Will it make any difference if the client is living at the premises when the expenditure is incurred?

Raj

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By AnonymousUser
05th May 2004 18:07

Repairs
Look at Inland Revenue booklet IR150 it deals with post cessation expenses!!

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By chriswalter1801
05th May 2004 16:34

Depends On work being done
If the repair work is restoring the property to its orginal state or is replacing knackered or modernising old fixings that would still give the same function, this would be allowable ( This includes Double Glazing replacement etc)

The difficulty comes where an improvement is made that adds to the property ie: Conservatory ).

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