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Insurance Excess

Insurance Excess

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Client with buy to let property.

Is insurance excess (claim due to burst pipe) tax deductible ?

 

Replies (9)

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By Accountant A
27th Dec 2017 18:51

What's your thinking about it? Does it meet the usual tests for deductibility?

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RLI
By lionofludesch
28th Dec 2017 09:51

Come on, Jim.

How basic is this ?

You'll be asking if the rent's taxable next.

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paddle steamer
By DJKL
28th Dec 2017 11:58

Depends what is in claim, we know cause was burst pipe but claim might be re replacing curtains, carpets, furniture, making good etc, we are not told; excess of course relates to the various heads of the claim.

I would take total claim, split into parts/types and then apportion excess across the heads.

However if claim merely relates to repairs (no replacements) then excess is repairs and follows how repairs would themselves be treated.

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Replying to DJKL:
RLI
By lionofludesch
28th Dec 2017 15:37

I can't think of a scenario where the excess would include some capital element. The insurance company wouldn't cough up for any element of improvement.

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Replying to lionofludesch:
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By Portia Nina Levin
28th Dec 2017 15:45

Replacing damaged furniture, on a like for like basis, isn't improvement. But it is capital.

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Replying to Portia Nina Levin:
RLI
By lionofludesch
28th Dec 2017 15:51

That's true.

Good example.

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By Portia Nina Levin
28th Dec 2017 15:07

This is truly appalling.

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By andy.partridge
28th Dec 2017 15:26

Jim, you are a good chap, but you seem to be suffering from a lack of confidence. I am not convinced that posting here is the best way to rebuild it.

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Replying to andy.partridge:
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By Portia Nina Levin
28th Dec 2017 15:48

Actually Andy, Jim's lacking a lot more than confidence, and, quite frankly, if he's charging people for what they think are professional services, Jim's taking the p155.

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