Pre let property expenses for a new purchased property

Hi,
I have a client with a new purchased property that he intends to let.
The property was in a reason condition when purchased but he decided to paint and decorate, put in a new shower etc prior to letting so it would let quicker.
I know this is a grey area and just would like options on what would be acceptable as repairs and renewals or should everything be capital expenses

Comments

  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Is this the same question you posted earlier? Or is this a different client?
  • 0149witty
    0149witty Registered, FMAAT, AAT Licensed Accountant Posts: 16
    Yes same client, I am thinking expenses in bathroom as capital and painting and decorating revenue.
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Is the new shower a replacement of an older one? The following link may be helpful
    https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2030

  • 0149witty
    0149witty Registered, FMAAT, AAT Licensed Accountant Posts: 16
    Thanks, yes it was just a replacement, it was shower and cubicle. my concern is it was done prior to letting, it’s difficult to judge what HMRC see as “run down conditions” it states that if so “the cost to put it in usable condition is capital”.
Privacy Policy