Allowable tax deductions

[Antnkel]

Hi guys, Just doing my tax return and I can't remember if I can claim for the gas and electrical checks against income tax.

Thanks.

Anthony.

[Melboy]

The answer is yes you can. Keep all receipts and certificates for at least 5 years.... or as in my case forever 'cos they are filed away.

[Antnkel]

Thanks.

[Richlist]

I'm afraid that its not quite as simple as Mr Melboy would have you believe.

1. Provided that they were safety checks only and didn't include an element of work that could be judged as improvement. and

2. Provided the checks were carried out whilst the property was being let or was available to let and not during a period of owner occupation.

then yes they are tax deductable.

[ehup]

I'm afraid that its not quite as simple as Mr Melboy would have you believe.

1. Provided that they were safety checks only and didn't include an element of work that could be judged as improvement. and

2. Provided the checks were carried out whilst the property was being let or was available to let and not during a period of owner occupation.

then yes they are tax deductable.

[ehup]

I have recently renovated our property to get it ready for letting by re decorating and fitting a new boiler, bathroom and kitchen fittings. The property was not in a state for letting as the boiler was no longer safe and wouldnt pass a gas safety check etc, the bathroom and kitchen fittings were pre 70 and the overall decoration of the property inc carpets was poor.

Are these costs deductable?

The property had been unoccupied for 4 years prior to carrying out the work.

Thanks in advance

[Richlist]

If the property was not let or had not been available to let until the work was carried out then you cannot offset the costs against income tax as the property was not, at that time, part of your lettings business. . The expenditure seems to be capital expenditure and can therefore be used to reduce your CGT on disposal.

My understanding is that the only expenditure incurred before letting that can be offset for income tax is that of a legal/ safety nature that is needed to comply such as an EPC cert' or gas/ electrical safety certificates.

I would suggest you get the property valued before you let it otherwise you will have a difficult job calculating your CGT liability when you sell.