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Please can someone help! I am in the process of buying my first property through my new ltd company. My guess is it will complete in 6 weeks or so. It is a 3 bed property that will be a single let. The property is perfectly habitable now and could easily be rented out as it is, however I want to do a fairly big refurb. E.g. replacing the kitchen and bathroom, new carpets, redecorate etc. This will mostly be a like-for-like refurb and I don't think the majority of it will count as a capital expense. If I do this work before I first put tenants in, am I right in understanding that I cannot claim this work as an expense as it involves getting the property ready to be let. However if I put tenants in first, then when they leave I decide to do the refurb, I now could claim this as an expense as the "rental business" would have already started. Have I got that right? My big question is... *What is the minimum period of time I would have to have a tenant in my property before I could class any replacement refurb work as a revenue expense?* If I rent the property out on a 1 week AST, then do a big refurb, clearly this will turn some heads with HMRC. So what is the magic number? 1 month? 6 months? I hope I can get some wise responses on this. Many thanks!
Hi guys, just a quick few questions on tax that come up less often. BTL insurance claim, if you claim on your insurance for damage to a BTL property, do you claim the insurance payout as income and claim any contractor repair costs as expenses or do you claim neither as its an insurance payout rather than earned income? If you withhold some or all of the deposit due to losses of time, work, rent, damage or whatever, either for actual contractor costs or for your own time and hard work to clean and repair etc, does this need to be claimed as income or not as the deposit is actually to counter act your losses? Many Thanks Scott Child