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Where Taxpayers and Advisers Meet

Carpet replacement - allowable expenditure in BTL?

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby section 44 » Fri Nov 20, 2015 12:11 pm

The key point is whether or not fitted carpet is a fixture.

In TSB v Botham, a repossession case, the Court of Appeal's view was that they weren't. However in the more recent Taylor Wimpey "white goods" VAT case the FTT thought that they were ...

Ian McTernan CTA
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Location: Bedford
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Re: Carpet replacement - allowable expenditure in BTL?

Postby Ian McTernan CTA » Thu Dec 03, 2015 11:57 am

Welcome to the mad world of what is, and what isn't , allowable as a deduction in what should be the simple business of letting a property.

As you have replaced the entirety of the carpet throughout the house, under the rules as they currently stand, that's most likely to be classed as non-revenue expense. Ie, not allowable against the rental income. If you had repaired it, that would have been allowable.

The rules are changing (again!) from April...
McTernan Associates Ltd
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section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby section 44 » Thu Dec 03, 2015 12:00 pm

... but if (note the "if") its a fixture then clearly even replacing the entire carpet is fairly minor in the context of the asset - the property


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