Renovation after rent-a-room

[kev53]

Consider the following scenario: A house is primary residence and a room is let under the rent-a-room scheme, two years later the house is renovated and is fully let to a family. Can the renovation costs be deducted from the expenses, given its not the first let (i.e. rooms let under rent a room scheme) or does that count?? Or would the renovation costs be counted as pre-let expenses, eventhough it was rented under the rent a room scheme?? Any info welcome, thanks.

 

[mathepac]

... Can the renovation costs be deducted from the expenses, given its not the first let (i.e. rooms let under rent a room scheme) or does that count?? ....

Given that no tax liability accrues under the threshold of the rent-a-room scheme, it is unrealistic to expect to offset costs incurred under that scheme against income under a different letting scenario, IMHO.

 

[kev53]

thanks mathepac. I should clarify, tenent renting room left few months before the renovation took place, house decorated to make more appealing to the rental market, hence the renovation/decoration costs were incurred only to make it more rentable to the family market. Is this irrelevant?? Would this count as a second let given I had someone renting rooms??

 

[murphaph]

It's irrelevant I'm afraid. The rent a room scheme is separate from an investment property and you retain all the benefits of the property remaining a PPR.

Doing a place up to make it more rentable before its first letting is not an allowable expense.