Seeking BTL, refurbishment tax allowance?
Discussion
I'm selling a BTL, tenant has left without drama, last rent payment was in May this year.
I am spending three thousand decorating to refurbish the property (to how it was before it was rented out) ready for sale.
Can I offset the three thousand against rental income this year, or last year?
My BTL 'business' has ended, but I would have thought this was a cost entirely incurred by renting it out?
I am spending three thousand decorating to refurbish the property (to how it was before it was rented out) ready for sale.
Can I offset the three thousand against rental income this year, or last year?
My BTL 'business' has ended, but I would have thought this was a cost entirely incurred by renting it out?
As you have had a rental payment this financial year I can’t see how you could put it to the previous year. I don’t know if that is allowed anyway.
Next year when you fill in your self assessment your figures will show a loss on your property income so if you have other taxable income you should get a rebate.
Next year when you fill in your self assessment your figures will show a loss on your property income so if you have other taxable income you should get a rebate.
Peterpetrole said:
Yes thanks, so the question is can I still offset the costs for refurbishment AFTER the flat has finished being rented, ie there is no rental business anymore?
Do you mean the rental business no longer exists or do you mean it exists and it currently has an unlet property? I would certainly think that some if not all of the repair costs can be offset against the rental income.
Even if it cannot, you might be able to include it as "Enhancement Expenditure" for Capital Gains Tax purposes - depending on the nature of the expenditure.
On what date did the rental income cease and in what time period was this specific expenditure incurred?
Even if it cannot, you might be able to include it as "Enhancement Expenditure" for Capital Gains Tax purposes - depending on the nature of the expenditure.
On what date did the rental income cease and in what time period was this specific expenditure incurred?
Sounds like "repairs" to me so only against income.
If your rental income in 2026/27 is £1,000 and your repairs are £3,000 I reckon you'll have to take the £2,000 on the chin as a loss. I'm not aware of any carry-back available against last year's income. I'm also not aware of any way to set off rental losses against against other income in the current year.
If your rental income in 2026/27 is £1,000 and your repairs are £3,000 I reckon you'll have to take the £2,000 on the chin as a loss. I'm not aware of any carry-back available against last year's income. I'm also not aware of any way to set off rental losses against against other income in the current year.
Panamax said:
Sounds like "repairs" to me so only against income.
If your rental income in 2026/27 is £1,000 and your repairs are £3,000 I reckon you'll have to take the £2,000 on the chin as a loss. I'm not aware of any carry-back available against last year's income. I'm also not aware of any way to set off rental losses against against other income in the current year.
This.If your rental income in 2026/27 is £1,000 and your repairs are £3,000 I reckon you'll have to take the £2,000 on the chin as a loss. I'm not aware of any carry-back available against last year's income. I'm also not aware of any way to set off rental losses against against other income in the current year.
You can offset this against your 26/27 rental income only. It can't be carried back and it can't be offset against other income.
If you are putting it back to how it was then any excess can't be set against the sale either.
MaxFromage said:
Panamax said:
Sounds like "repairs" to me so only against income.
If your rental income in 2026/27 is £1,000 and your repairs are £3,000 I reckon you'll have to take the £2,000 on the chin as a loss. I'm not aware of any carry-back available against last year's income. I'm also not aware of any way to set off rental losses against against other income in the current year.
This.If your rental income in 2026/27 is £1,000 and your repairs are £3,000 I reckon you'll have to take the £2,000 on the chin as a loss. I'm not aware of any carry-back available against last year's income. I'm also not aware of any way to set off rental losses against against other income in the current year.
You can offset this against your 26/27 rental income only. It can't be carried back and it can't be offset against other income.
If you are putting it back to how it was then any excess can't be set against the sale either.
Gassing Station | Finance | Top of Page | What's New | My Stuff