BTL TAX CONFUSION
Discussion
Hope someone can give me a bit of guidance.
In April 2019 I did some minor "sprucing up" in a property, nothing out of the ordinary, replaced some blinds, painted the living room, replaced the carpets re-tiled and painted the bathroom and replaced the shower head.
These works were completed end of May the carpet was replaced 2nd June.
As far as I am aware all those costs are allowable against revenue as they are repairs/ like for like replacement.
That is correct isnt it?
This is where it gets complex, 2 days after the renovations were complete sewerage leaked into the flat from a communal pipe. The carpets lasted 2 or 3 days and the entire flat needed significant re-decoration.
So can I claim the costs again against revenue ? Also I received an insurance payout for the some of the damage, do I declare this as income?
In April 2019 I did some minor "sprucing up" in a property, nothing out of the ordinary, replaced some blinds, painted the living room, replaced the carpets re-tiled and painted the bathroom and replaced the shower head.
These works were completed end of May the carpet was replaced 2nd June.
As far as I am aware all those costs are allowable against revenue as they are repairs/ like for like replacement.
That is correct isnt it?
This is where it gets complex, 2 days after the renovations were complete sewerage leaked into the flat from a communal pipe. The carpets lasted 2 or 3 days and the entire flat needed significant re-decoration.
So can I claim the costs again against revenue ? Also I received an insurance payout for the some of the damage, do I declare this as income?
Yes - you can claim all those costs but offset the insurance payment against them to - so you only claim for the actual cost incurred.
If you feel you need to explain to HMRC why these costs are so much higher, you can use the "white space" section on the tax return to give more detail.
If you feel you need to explain to HMRC why these costs are so much higher, you can use the "white space" section on the tax return to give more detail.
Eric Mc said:
Yes - you can claim all those costs but offset the insurance payment against them to - so you only claim for the actual cost incurred.
If you feel you need to explain to HMRC why these costs are so much higher, you can use the "white space" section on the tax return to give more detail.
Thanks Eric much depreciated If you feel you need to explain to HMRC why these costs are so much higher, you can use the "white space" section on the tax return to give more detail.
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