Renovation expenses - mix of revenue and CGT

Hi, I have done renovation work on a rental property after 8 years of quite a neglectful tenant, meaning I needed to change things like to like (e.g. kitchen). I also took the opportunity to upgrade the property EPC - I would like to make sure I understand the two categories correct. Under revenue, I would like to include - new kitchen and bathroom, white goods, carpet, painting and decorating, replacing damaged laminated floor. Under CGT, I would like to include - insulation of walls and roof, new radiators, double-glazed windows throughout. Can you please comment on - Is the distribution correct? Do I include the estimated labour under each category separately? What if the resulting expense is greater than an annual rent income? Is there a way to account for loss of rent during the renovation? Thank you very much for your help.

Hi, good morning. I wonder if you saw my question? I saw that other questions were answered, and wonder if you missed it. I have some time off and would like to submit my SA next week. Thank you

Hi,

Generally speaking, expenditure on repairs and maintenance is deductible from rental income, while any improvement costs, for example any extensions, fall into the category of capital expenditure. You can see detailed guidance here: 

PIM2030 - Deductions: repairs: is it capital?  

If expendiiture exceeds rental income in a given year, the resulting loss can be carried forward and set off against rental profits in the following year. You can see more information here:

PIM4210 - Losses: setting losses against future profits

A definitive guide to allowable rental deductions can be seen here:                            

PIM1900 - Deductions

Thank you.