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tax return allowance question

Started by drhoney72, January 21, 2025, 03:45:53 PM

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drhoney72

I acquired my mother house when she passed away and it needed extensive repairs to the walls, kitchen bathroom. replacement floors. it needed new plumbing and electrics as well.
I have a couple of other properties but the work on my mums house has pushed the profits very low and flagged up red when I entered the figure in the relevant box under building and repairs. ' this amount is excess, please check your figures'

Any advice how to avoid this as I dont want to trigger any suspicion, its all legit but to go from £22k repairs in previous years to £53K is quite a jump !

Many thanks

jpkeates

You'll probably trigger suspiscion of some sort whatever you do, because that will look odd when you submit it.

It's possible that some of that work might be capital in nature, but if it's replacing stuff, maybe not. As long as you're confident you're right, I'd submit the return.

Hippogriff

It nearly always says that. I wonder why. ;)

Just go with it... HMRC have [much] bigger fish to fry, and hardly any spare frying pans.

drhoney72

update:
It would seem that most if not all the work done counts as capital expenses !!!

a few questions please if someone can help with some grey areas.......

1) even if repairing the damaged walls and replastering  and repainting whole rooms , and redec because this was a result of renovating the whole house? can we claim for replastering and redecs?

2)we replaced the bathroom ( can we claim back for this as it was old fashioned avaocado type ) is this capital or repair as it was usable but no tenant would pay to use it BUT obv this is betterment but what isnt from a 1970s bathroom suite !!

3)carpet was old , stained with tears so we replaced this with new carpet and underlay

4) we replaced worn torn carpet with new wooden flooring in high impact areas,

5) replace whole electric system as again not updates.

6) replace new plumbing pipes and boiler, new radiators.

I know we cant claim for new kitchen, additional bathroom. new sky light. new flat roof.

I know ive left it late to ask these questions, we meant to get an accountant but time ran away..... next year for sure,someone i know inherited her dads flat and put everything through as repairs even though it was new kitchen and bathroom, plumbing and electrics but i am not so brave......

Many thanks so much for any advice. i had red blogs and gov pages  ,


jpkeates

#4
I don't know how that can "seem" that. All of that sounds like nonsense to me.
Any replacement of old stuff is going to have an element of betterment.

drhoney72

jpkeates - thats not a very helpful answer !!

Hopefully someone will be able to be more responsive!

Simon Pambin

Personally, the approach I took was to treat works prior to the first let as capital and pretty much everything after that as running costs. That's not entirely logical but it's all a bit if a grey area, as you've discovered.

jpkeates

Quote from: drhoney72 on January 26, 2025, 03:15:08 PMjpkeates - thats not a very helpful answer !!
It's five days before the date your tax return is due, you don't know what you're doing and your post says "It would seem that most if not all the work done counts as capital expenses" which is wrong.

I've answered your question already, and you've told me you think I'm wrong (and as you can see, other people have a different approach). Good luck.

Hippogriff

Quote from: drhoney72 on January 26, 2025, 01:42:39 PMi had red blogs and gov pages  ,

Provide the answer(s) yourself then. Numptie.

drhoney72

@Hippogriff
Ironic youre a moderator and abuse officer with comments like that  :D

Hippogriff

I'm not positive that you understand the meaning of irony Dr. Morissette.

heavykarma

Who is Dr. Morissette ?  I Googled and all I got was a plastic surgeon.  Please enlighten me. 

jpkeates

I think he's referring to the Canadian singer Alanis Morissette, one of who's hits was "Ironic". Which is famous for being very wrong about what ironic means.

heavykarma

Ah, so it' s not just Americans who don' t get irony. 

jpkeates

They just get rust coloured presidents.

Hippogriff

Quote from: heavykarma on January 28, 2025, 05:00:42 PMAh, so it' s not just Americans who don' t get irony.

Also Canadians and drhoney72.