We have carried out a mixture of renovations, improvements and extension to an investment property financed by way of a re-mortgage with a new lender. Cost of improvements c. 70k.
What is allowable under what type of expense? Are legal costs and valuation for moving mortgage allowable as expenses?
Do we record all improvements as expenses, which would create a loss in the relevant year and then carry forward the loss into subsequent years?
The extension was a conversion of a garage space into additional bedroom and living room.
Other improvements:
Converted two bedrooms to en-suite
New Kitchen units
Garden work-Created patio, tree cutting, new fencing,
Changed heating system to Gas/New Boiler, removed oil tank.
Electrical work
Plumbing work
New Bathroom suite
Does any of this have to be recorded as a Capital expense or Ware & Tare or does it all go down simply as a expenses?
Thanks in advance
Bizzy
What is allowable under what type of expense? Are legal costs and valuation for moving mortgage allowable as expenses?
Do we record all improvements as expenses, which would create a loss in the relevant year and then carry forward the loss into subsequent years?
The extension was a conversion of a garage space into additional bedroom and living room.
Other improvements:
Converted two bedrooms to en-suite
New Kitchen units
Garden work-Created patio, tree cutting, new fencing,
Changed heating system to Gas/New Boiler, removed oil tank.
Electrical work
Plumbing work
New Bathroom suite
Does any of this have to be recorded as a Capital expense or Ware & Tare or does it all go down simply as a expenses?
Thanks in advance
Bizzy