Hmmmm. I'm definitely asking Revenue for a suggestion on how to proceed
You asked how I think a Revenue official would likely view a claim on the basis of the facts presented by the OP. You are obviously free to disagree but I don’t think it’s fair to describe my response as absurd. As you said yourself, this is a grey area.
The OP didn’t tell us that he replaced like-with-like or that there was anything wrong with the existing bathroom. You added all these details yourself.
Don't think so.If you owned a second property (and for ease of analysis let’s say it’s neither a PPR nor a let property), and on disposal sought to claim enhancement expenditure for the type of spend under discussion here, Revenue would tell you no chance.
Don't think so.
As it happens, a relative of mine sold a holiday home a couple of years ago and claimed (on the advice of her accountant) a bathroom refurbishment as an enhancement for CGT purposes. Revenue didn't have any problem with this deduction.
Every case is obviously fact specific but in this case the refurbishment very clearly added value to the property at the time it was sold.
Yes.When you say Revenue had no problem, do you mean they queried it and gave it a green lightt?
Yes.
I'm afraid that's not the way the tax code works - you don't get to pick and choose.Either way of claiming seems reasonable
No it's not, it's a repair. That's how I treat it. And my accountant agrees. Same thing with the boiler. If you put in a brand new bathroom where none existed before that would be enhancement. Rental properties need constant repairs and maintenance including redoing bathrooms every so often.I don't see how replacing a bathroom could be considered "maintenance".
Surely it's an "enhancement" (and hence deductible from CGT, not income tax).
I had this issue a couple of years ago. I had three showers where the tiling was very bad so I got a quote to replace them. As I live abroad I only got to see them afterwards, it was around 6K for the 3 I think. I was very sorry I didn't just pull out the whole shower room and start from scratch as now I've lovely shiny tiled showers with the rest of the room looking shabby in comparison. Sometimes the only way to do a job right it to take out everything and start from scratch as that makes the most sense and it's more economical in the long run. Doing it bit by bit in a small bathroom/toilet/showerroom doesn't always work.There’s always shades of grey here, but:
If the OP just replaced the sanitary ware, with other sanitary ware of similar spec, I’m sure you’d agree that’s not enhancement.
If they just replaced the tiling, ditto.
If they just repainted, ditto.
If they just replaced the shower, ditto.
All of them together....???
There’s a certain amount of case law in relation to this issue. One example cited is the replacement of old single glazed windows, with double glazing. Now that is clearly an improvement, but advancement in standard materials means that such a replacement would be accepted as a repair.
Hmmmm. I'm definitely asking Revenue for a suggestion on how to proceed - I
It could be significant enough in 6 years time if Revenue decide you were wrong and add penalties and interest.it's not going to be significant money either way.
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