Tax relief on property maintenance costs

[rolo]

Can one claim the total cost of maintenance in the year that it is spent.

i.e. Simple case
Year 1
double galzed windows to replace single = £6K
years rent = £6K, therefore no profit and no tax.
Year 2
no maintenance
tax to be paid on all £6K rent

[accountant@uktaxshop]

In simple terms, if you are not improving the property it is treated as "repairs and maintenance", and so deductible as above.

If you are improving the property it is treated as a capital expenditure, and not deductible in this way.

It is worth noting that any losses can be carried forward to the following year, and offset agaisnt profit.

If you need some help with your land and property self assessemt form, please let me know.

James Smith
Chartered Accountat
www.uktaxshop.co.uk
01284 764436