Claim tax relief on external insulation for rented property?

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OkeyDokey

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Our rental property suffers from condensation and dampness. Two sets of tennents have moved out in the last year because of it. We were advised by an expert that external insulation is the best way to solve it.

It's very expensive - circa 11,000. Can we claim any relief on rental income for this?
 
That would count as Capital expenditure as an enhancement to the building and not as repairs.

It would not be allowable as an expense to be set against rental income but would reduce any capital gain when the property is disposed of, imho
 
As far as I know, landlords can also benefit from the Home Renovation Incentive scheme where you will receive some tax credits for the work carried out, as long as its done by a reputable contractor.

You may also be eligible for grants under the Better Energy Homes scheme, but I think you need to have sitting tenants to get this
 
As capital expenditure, you can claim your 12.5% wear-and-tear every year, right?
If you dispose of the property 3 years later, can you then use the remaining 5/8 of the expenditure to reduce your capital gain? Does it work like that?
Thanks,
/M.
 
You can only claim wear & tear allowances where it is a fixture or fitting. Without boring you on the caselaw a fixture is something that can be removed from a building without causing damage. I doubt that you would be able to remove this without doing damage.
 
What is this magic insulation that the OP speaks of? Much mire detail is needed.

And no it doesn't sound like something to deduct from rental income tax returns, sounds more like capital expenditure, but as I'm not sure an accountant is the only one to ask.
 
Bronte said:
What is this magic insulation that the OP speaks of? Much mire detail is needed.

And no it doesn't sound like something to deduct from rental income tax returns, sounds more like capital expenditure, but as I'm not sure an accountant is the only one to ask.
Click to expand...

EWI
External Wall Insulation
 
My new best friend: [broken link removed]
Wish I'd known about this years ago - in contrast to the standard compressor types. Might be a much cheap way to solve your issue?
 
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