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Are These Legitimate Expenses?

Question We purchased four buy to let properties during 09-10. Each one needed decorating and re carpeting prior to letting to make them clean and habitable. We had one boiler condemned and replaced and had to make electrics safe prior to occupation. Are these legitimate expenses to set against our tax liability for 2009-10? 

Arthur Weller Replies
If you look on the HMRC website on the Property Income Manual pages PIM2020 & PIM2505:


http://www.hmrc.gov.uk/manuals/pimmanual/PIM2020.htm
http://www.hmrc.gov.uk/manuals/pimmanual/PIM2505.htm

You will see that if the property was in a fit state to rent out when you purchased it and the purchase price was not significantly reduced due to the property being in a bad state, then any standard 'repairs and renewals' that would be allowable against rental income in the middle of tenancy are similarly allowable before the first tenancy begins.

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

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