Pre Letting Expenses s97A up to e5000

J

josoap

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Hi
I have recently rented out an apartment which had been vacant for 12 months. Before this our 1st renting out the apartment had been rented out by the previous owner. My query relates to the expenditure we incurred before letting out, which included replacement of Windows - replacement of boiler - installation of new radiators at a cost in excess of e5000. We also replaced white goods etc. My question is whether the items listed can be claimed in my tax return as a e 5000 deductible under 97a provisions.
Any advice will be greatly appreciated.
 
I always thought that anything spent before renting out is not tax deductable only letting fees but i stand corrected if I am incorrect.
 
Lettings by the previous owner are irrelevant.

Pre-letting expenditure rules apply to your ownership.
 
You’re in Section 97A territory alright (e.g. 12 months vacant, etc).

However, in order to get the special deductions, the expenditure must be deductible under normal circumstances.

Windows, a boiler, radiators, and white goods are a mixture of enhancement expenditure for CGT purposes and items which qualify for capital allowances over eight years.

So any discussion around Section 97A is somewhat moot.
 
Let's say in the next year or two the op is force out of letting because of the current legislation and new legislation to come, but he has only used 1 year of his 12.5 % per year deductions. Highly likely imho.

What does he do with the rest then. Can he write the other 7 years worth down in one year?
 
Thank you Gordon and all for your comments. By way of further help to me can further advice and comments be given in relation to the following:
As stated earlier the expenditure was all incurred prior to my 1st letting. Can I stil claim capital allowances over 8 years in relation to the replacement of Windows, boiler, radiators, or will tax benefit only accrue from a capital gains point of view. Is the new e5000 relief likely to be of any benefit to me. I appreciate that white goods are not recoverable.
Thanks in advance.
 
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