PPR and renovation expenses

I recently took on a client who told me it was just one buy to let, joint with her husband and there would be some pre-letting renovation expenses to include as it was purchased May 2015 and let from August 2015. Nice and simple.

I have now been told that they lived in the property after it was purchased and that they have written to HMRC electing to claim this as their PPR until the letting commenced, at which point they moved out into another house, which I am assuming was owned already and has now become their PPR.

Therefore my questions are:

a) Can they claim any of the pre-letting renovation expenses (decorating, kitchen and bathroom replacement etc), furniture costs or apartment service charges ? I assume not as this would be a bit like having your cake and eating it as they have now protected themselves against any increase in value arising from these works by claiming the PPR relief.

b) Would it make any difference if they only purchased the property with the intention of renting it out and lived on site as they were doing the renovation themselves? (Again I suspect not as they have elected to have it as their PPR from the date of purchase).

c) Would they be able to claim the various fees incurred in taking out the mortgage in May 2015? (Again I suspect not).

I have probably answered my own questions but as I have not dealt with this scenario before I would appreciate your input, plus any guidance on anything that I might have overlooked!


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