What can be claimed before a flat is rented

What can be claimed before a flat is rented

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Not 100% sure on what a client can claim before the rent a property out. Client needs to spend about £1,000 to get property up to scratch. Can we claim all of this?
Rental

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Chris Caspell CTA TEP
By ccaspell
08th Mar 2008 15:30

Expenses incurred before rental begins
These can be reclaimed under ICTA88/S401 or ITTOIA05/S57.

Relief is only due where the expenditure:

(1) is incurred within a period of seven years before the date the rental business is started, and
(2) is not otherwise allowable as a deduction for tax purposes, and
(3) would have been allowed as a deduction if it had been incurred after the rental business started.

This means that, to be allowable, the expenditure must be incurred wholly and exclusively for the purposes of the rental business and must not be capital expenditure etc.

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By User deleted
10th Mar 2008 17:21

Caution
No argument at all with Chris' reply --he is absolutely right to bring in the word "capital" .
What makes me uneasy is the commment about bringing the property "up to scratch". Have a look at the Law Shipping and Odeon Cinemas judgements from which we learn that it all depends on the state of these premises when acquired. If , at that point, completely unlettable (either commercially or by law) the expenditure incurred in making the property rentable is classifiable as capital and cannot be included in what is the equivalent of a pre-trading expenditure claim.

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