UK Landlord Forum / Life

Dear all,

I am planning to modernise my property a bit prior to renting.

Such as a new bathroom, fence mending some windows and extractor fans.

Can these all be deducted from the rental income profits for tax purposes.

How long before the first tenants can I reasonably improve things and deduct the tax from the future rental income. I assume the tax year is April to April, so anything done before April would be classed as a previous year and not brought forward.

Also, I have a boiler check each year which validates my boiler warranty would can this also be deducted from the Tax or would this be redundant and unnecessary if a gas safety check is needed each year.

Thanks for all your help.

If the property hasn't been rented before, you claim these costs as allowable expenses against income as if they were incurred on the first day of the first tenancy - you can do this for expenses that were for the letting business only incurred up to six years previously.

If the improvement is sufficient to materially increase the value of the property, they are likely to be capital rather than operational expenses. If you are replacing one bathroom suite with another, that's probably operational.

The boiler check is allowable against income for tax, yes.

Thanks Jpkeates I will keep your salient points in mind