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Abigail

100% Allowable Tax Expense?

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Hello,

Is installing new double glazing throughout the property 100% tax deductable? All windows are very old and wooden and in need of repair which I intend to do this new year? Any advice welcome please.

Many thanks A

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In short yes.

You are replacing the old single glazed windows with modern equivalents, therefore this a revenue expense, not capital.

Hope this helps

Regards

Sherena Glanton CTA

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Hi Simhar

You need to be careful with furniture on a New for Old basis - it is a different rule to double glazing. Double glazing would come under Repairs and Maintenance. It used to be capitalised but a few years back HMRC agreed that replacing old windows with new modern equivalents is R & M and therefore a revenue expense.

Re furniture, you have two options generally, either a wear and tear allowance of 10% of rental (less council tax and water), or a 'renewals basis'.

The renewals basis would mean that you cannot get the 'first purchase' but can claim the replacement, eg, you furnish a property, and then a few years later replace the sofa, then the cost of the new sofa would be allowable, but not the original furnishing.

You can only apply one of these methods and not both to run together.

I hope this helps

Sherena

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Would replacing old single glazed windows with double glazed windows come under the Landlords Energy Saving Allowance (LESA)?

It's my first time filling out the online assessment form (just in time for the end of December!) and thought it might come under that.

I'm a newbie landlord so it's all a muddle really... <_<

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Yes ,it is allowable having replaced windows myself for double glazed units and I had it confirmed by the IR that it is 100% allowable.

Mel.

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This forum really is a great place to read and learn...

Having a nightmare at the moment with one of my flats.

Just having a tennat give notice before Christmas, we was living at his girfriends, and the place was locked up so no air was getting in.

I went to have a look and found the following...

Rotten windows. Had to quickly repair one of them with hardened filler, but on further inspection, all the others were rotten, so they need replacing... They were 15 years old, but under the lease I had to replace them.

1) New windows UPVC costing £1500. (now I would have had these as capital) but reading this they will now be revenue expense.

2) Hole in side bath that had been repaired. It was now not repairable due to damage, so I had to replace the bath, which meant a new suite (as they dont do pea green anymore), re-tile the walls and the floor. Just replaces like for like, didnt up-grade the bathroom, just replace with white suite and white tiles. Did all the work myself, cost £750.00 for tiles, suite, plumbing fixings, grout etc

3) Had to replace the emersion heater. Went to do this, but the cylinder was again 15-20 years old, and I found a split in the tank (well an emergency call for the tennant as water was running all over the floor when he got in). So I had to replace the tank £450. Fight with insurance as they say it is wear and tear, and will not pay up.

4) The stick down tiles in the floor broken, so replaced with tiled floor £150, again all labour by myself.

5) fixed wire smoke alarms, with battery back up with rising heat £160 ( I think they will have to be legislation soon on ground floor flats so got this done)

6) On inspection of the consumer board after fitting the smoke alarm, the sparky tells me its so outdated now that it will not pass regulations for circut trip, and I will not get an annual cert. £350 for two new boards, and annual certification.

7) Bits and bods for new tennat £100.

So £3400 spend on flat to get it ready for new tennat.

As I see it all of this is revenue expenditure, (ok grey area on fire alarm and cirut board) but I would not be able to let this out if it were not done.

My point being, that there is a whole heap of info on this board I would have had the windows down for Capital, rather than revenue this year.

Hey ho, just means no tax to pay this year and carry any loss forward to next year...

Happy New Year all.

Mr F

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I think I will have to look at getting double glazing done at some stage in a new property I've recently bought.

Prospective tenants have been asking about it and after a visit a closer look I did notice rotten old windows, not sure i can afford it at the moment

are there any grants, aids available to landlords or a scheme to help pay for this? Any idea what 6 windows UPVC may cost?

I did a couple of enquiries last night online and today was bombarded with calls from double glazing salesmen -never had to get it done before so not sure what to look for apart from quality, a competitive price.

This is in addition to all the other work the house needs, damp course, repair to chimney, re-pointing, possible new water tank as old one has leaked in the past.

If this is a 100% tax deductable then it will be loss carried over again, can these losses be offset against other gains or income? Or does that apply to holiday lettings only?

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if you have incurred a revenue loss on the rental property you can either ofset withing your BTL portfolio in the tax year or carry the loss forward. Unfortunately you cannot relieve the losses against other income - this is only available on furnished holiday lettings.

Sherena

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Thanks Sherena.

I haven’t incurred a loss on that particular rental property as such but have on other BTL properties. So, am I right that any other income (not BTL) cannot be offset any losses or gains? The double glazing itself will cost me at least 2-3K, as the property has box sash windows and to keep in line with next doors and many in the street the same double glazed will cost quite a bit, but standard plain double glazed casement windows that will alter the appearance of the house will cost less. Would 2-3K be allowable as an expense –to replace and keep same for same.

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The answer is YES. I did it last year after speaking to HMIR&C and was told it is an allowable deduction to replace rotton wooden windows with double glazed units. So I deducted the total amount last year £2500 ....... no queries were raised either.

Mel.

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The double glazing cost will be allowable and you can only offset profits and losses of your rental portfolio. If at the end of the year your rental portfolio produces an overall loss, then this loss will be carried forward and can be set against future rental profits, but you cannot offset the loss against other income and gains.

Apologies for the late reply, haven't been about

Regards

Sherena

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