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Repairs before rental

Answer
Gazahawk25
Posted Fri, 01 Nov 2024 13:39:23 GMT by Gazahawk25
I had to rewire house before it was rented, can I claim tax relief on this.
Answer
HMRC Admin 17 Response
Posted Mon, 04 Nov 2024 11:58:39 GMT by HMRC Admin 17 Response

Hi ,
 
This is a question of repairs versus improvements. 

As this would be a like for like exchange even if this involved using more modern materials it would be classified as a repair
rather than an improvement. 

The guidance is here:

PIM2020 - Deductions: repairs: contents - HMRC internal manual - GOV.UK (www.gov.uk)  .

As for pre-letting expenses. 

Usually the rental business does not begin until the first property is let. 

Any expenses incurred before the first let must be solely for the rental business and must not be capital expenditure. 

Any qualifying pre-letting expenses are treated as incurred on the day the rental business commences which to confirm, is usually the day the property is first let. 

After the first property has been let any later expenditure leading up to the letting of the second and later properties is part of
the rental business and can be deducted - provided it is incurred wholly and exclusively for the purpose of the business and isn’t capital expenditure.

For further information please see :

PIM2505 - Beginning and end of a rental business: commencement  .

Thank you .

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