Capital item or Rental Income deductible on letting out of house?

[Yoga Woga]

All pre-letting and bought within the last month and/or few months - we are moving and this will be our first time to rent out this house: The following are all in the context of freshening up and repairing - we are doing the work while we are still here for the next few months)(had we done it earlier - we could have got the enjoyment from everything)

Capital item or Rental Income deductible?

Electric Hob - replacement (yet to be wired)
Electric Oven - replacement
Timber Shirting Boards - some indoor
Garden fence/screening new (Timber and screws/fittings/labour)
Fence Panels replacements
Electric Switches - replacements (several)
Bath, Shower, Sink, Toilet, Tiles - replacements
Plasterboard - replacement - (Kitchen and bathroom - due to tile removal)
Plasterboard - removal of a door and walling off to create an understairs den/office
Rockwool - wall and attic firewall reinforcement
Skimming tape and paste
Paint - wall paint and wood trim (Labour ourselves this year)
Window Glass - replacements of 5 windows (repair also)
Window hinge and handle - repair
Kitchen sink & New tap - replacements as current set - old and in need of a freshen up
Plumber & Carpenter
3 wooden venetian blinds - yet to be bought/replaced
Fridge - new one required
Flooring in Hall and Living room - yet to be replacement - existing one is very old laminate
Carpenter for this also
Oil Boiler - has to be checked - most likely needs to be replaced (cost and labour 2000)
Sofa - will need to buy
Beds - two will need to be bought
Wardrobe - 1 required
Chest of drawers - 1 required
Dishwasher - none in house
Outside Light - none over front door
Front door - on reflection we will have to wait a year or two to replace this!

 

[Oisin19]

is the property currently your PPR?

 

[Yoga Woga]

yes - but all works being done in context of proceeding to rent it.

 

[Oisin19]

so they would be all pre letting expenses and not allowed? You may get capital allowances on some of the items but since you are still using the house as your PPR the items aren't been used wholly and exclusively for the property rental business.

 

[Yoga Woga]

Thanks for that. I understand. It's a bit of a catch 22 - if we don't do the work now - it makes it very difficult to do when we have moved and the bathroom had to be done before we could even show the place to prospective renters. The new hob for example is still in the box. The Capital allowances are those you would deduct over 8 years? Sure we can take a chance - worst they can say is No.

 

[Bronte]

Don't be taking any chances. Don't start down that rocky road.

Any work done not is ineligible. White goods, furniture etc can be written off over 8 years.

I wouldn't be doing things like the rockwool/garden fence/hall flooring until after you have a new tenant.

But if you go ahead then this sounds like a lot of capital expenditure that can be used against CGT in the future when you sell.