Maintanance expense or Capital improvement?

[neilanglim]

Hi,

I am filling out a tax return for a rental property for the first time and would like to claim an expense for what I feel is maintance but it may be a capital gain........I hope someone can help me?

I used to live in the house but had to move so rented it out. The house has solid walls. When I lived there, there was a slight problem with condensation but we kept the place ventillated and heated and cleaned any slight mould on the walls.

Since tennants moved in, they do not ventillate or heat the house adequately and the condesation on the walls got so bad that the mould grew quickly and the paint peeled off and was causing damage to the plasterwork.

To rectify this I got a condensation man to have a look and he suggested some vents and to get internal wall insulation on one of the walls to improve the condensation problem. This has been done for a total cost of £2820.

Can this £2820 be expense be set against the rental income?? Or is it a capital expense? I feel the work was required to prevent ongoing deterioration of the property due to condensation/damp therefore feel its a maintance issue.

Any help on the subject would be greatly appreciated.

Neil

[Peter D]

I would suggest this is a capital item so is allowed when you dispose of the property. Regards Peter

[King_Maker]

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