Building a wall

by **KarenF** on Sat Jan 14, 2012 3:13 pm

Ok, a bit tricky. I bought a rental property. It had a half-constructed front garden wall when bought (base laid and a couple of rows of bricks). I paid over 600 to get the wall fully bricklayed and completed. Is this capital improvement or can it be accounted for against rental income?

by **robbob** on Sat Jan 14, 2012 3:58 pm

Strictly speaking as you were adding something that wasn't there when you purchased the property then this is a capital improvement, although there may be an element of revenue deductable repair if part of the work done was making good the part of the wall that was already there.

http://www.hmrc.gov.uk/manuals/pimmanual/PIM2020.htm

by **Peter D** on Sat Jan 14, 2012 4:01 pm

You were aware of the unfinished wall when you purchased it so it is treated as capital and accounted for on disposal. Was the property let out when you had the work done and was it a replacement wall. What was there before. Regards Peter

by **KarenF** on Sun Jan 15, 2012 9:35 am

Thanks, you're great. I didn't work on the wall untill two years after letting, as neighbours complained it was affecting their house value/presentation. There was presumably a fence there originally, but it had been taken down and a foundation laid for the wall.