Carry over of Expenses

T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
I have just been asked a question and I am not really sure if there is any way I can say yet??!!
My client has two rental properties, one of which has had a substantial amount of work done this year, so the profit on the two is quite low. I suggested that we capitalise the whole of the works as refurbishment costs. However, my client has asked whether there is any way some of the expenditure can be classed as repairs (which they can be - no problem), but not used this year, but in 2009/2010 instead. I can't do this .... can I?
Opinions welcome.


  • [Deleted User]
    I would have thought that the expenses can only be claimed in the year incurred and any refurbishments would be capitalised in the balance sheet under PPE. I have a feeling though that the treatment is different for investment properties.
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    When you say refurbishment costs do you mean improvements - so no CAs or do you mean plant and equipment with CAs?

    Don's right, they do have to be accounted for in the period they were incurred. But you can disclaim CAs and claim them next year, but you'll lose your 100% AIA relief.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    Thought so, but thought I would check. Many thanks everyone.
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    If the expenses are creating a loss, then this loss will be carried forward anyway. Therefore even if you could defer the expense which you cant the taxable outcome would remain the same.
Privacy Policy