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My long-term tenants have handed notice to end December 2017. The house definitely needs a lot of repairs and redecoration - I have no intention to make upgrades, as there is no need for it, at this time.
When should I commence these repairs while ensuring that the repairs are tax deductible?
Would I be able to deduct expenses against tax, if I commence works in January, AFTER they have left and BEFORE I put it back on the market again in Feb?
Or, would it be more prudent if I buy all the date-stamped/receipted materials while they are still in occupation and start works now? They have partly vacated the house already and are happy for me to commence works now.
This might be a stupidly simple question, but I have two properties, and this is the first time, someone has left the premises. I do not want to make mistakes and tangle with authorities.
You can do repairs anytime and its deductible for the currant tax year 4th april 2018
Just keep all recites of work done and claim it when you do your self assment if you are investing in your own name
if you invest via a company you can claim the repairs up until the company year end
Just keep good records
Learn Change and Adapt ?????
Thank You very much for that. I was under the impression that I could only do taxable repairs while the place was being occupied. I will send a notice of vacant premises to the Council to see if I can get Council Tax relief and slow down the pace of my refurb!
I am just a private LL, I tend to use a (very conservative) accountant to do Tax assessments.
A repair can be done anytime occupied or not
A great number of councils have stopped giving exemptions for council tax so you may fine you have to pay the tax until you fine a new Tenant
all the costs are tax deductible in the Tax year
Do the repairs as soon as possible when it's vacant
Yes you can do repairs and decorate at any time and it is tax deductable. The only thing I would add are intending to make any deductions from the deposit? If so you need to agree with the tennant the cost for damage before carrying out the work. Also take into account that the tennant must be able to live in the property untill the end of his tenancy. If your tennant can not live there they do not have to pay rent and you could end up with a bill for they accomadition.
Have long term tenants given sufficient notice and are they leaving due to disrepair and decoration. Or are they ones that caused it.
Just so you aware of future changes ( since you mentioned first time anyone left) P.
Would consider even if far away from property try and have 6 monthly regular inspections and resolving any repairs before they cost more.
Rules in property have been changing fast over last few years, Till joined propertytribes, even some I didn't know about. Don't get caught out, learn the guidance.
Check if licencing in your area.
Pre October 2015 AST and post October 2015.
new rules regarding new tenancies and issuing section 21.Is this furnished or unfurnished?
Coming soon Investorsk8.com
Wisdom - an integration of knowledge, experience, and deep understanding that incorporates tolerance for the uncertainties of life as well as its ups and downs.