vajark Registered Posts: 7 Regular contributor ⭐ 😼 ⭐
Im stuck.

Do you deduct 'decoration cost' from property income? I saw it deducted from property income in Dec 2006 paper, but I've seen it wasn't deducted in old exam paper. Is that depends on the figures? or...? I don't know.

Please help me.


  • Kairi
    Kairi Registered Posts: 25 💫 🐯 💫
    I did see that too. My BPP book says that you can deduct for maintenance and repair costs but not the costs for improvement.
    Hope this helps.
  • vajark
    vajark Registered Posts: 7 Regular contributor ⭐ 😼 ⭐

    Thank you. But is decoration 'improvement' or 'maintenance' ? ??? don't know. No details of decoration in exam paper. Its not easy to see what it should be. :crying:
  • Jon_1984
    Jon_1984 Registered Posts: 186 🎆 🐘 🎆
    I would dare to guess decorating is improvement where'as redecorating is maintainence.....I would also look at how long between acquiring property and expense being incurred in this situation to determine?

    As ever I think they will look for a common sense approach?
  • swampy19
    swampy19 Registered Posts: 10 Regular contributor ⭐ 😼 ⭐
    As mentioned you need to take a common sense approach - You can deduct for maintenance or decoration but you cannot deduct a capital expense.
    If the roof blows off in a storm that is a maintenance expense but if you were building a new conservatory then that is a capital - therefore improvement cost.
    But my tutor says if you add a note saying why you have included a particular cost then the examiner can understand your logic or reasoning.
    Therefore it's reasonable to assume that if you redecorate because tenants have been in a property for 5 years and then it is maintenance.
  • ambitious
    ambitious Banned User Posts: 93 💫 🐯 💫
    I'm sure your allowed both improvements and Redecoration of something that already exists in the property. what your not allowed is installation of new assets or things such as installation of heating or a new patio. Not allowed.
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