Rental Property Replace Kitchen and Bathroom

[johninsiam]

I am Non Resident and Not Ordinary Resident and a Non Resident Landlord, I live in Asia.

One of my houses, the tenant had been in for five Years, left it in a huge mess. I have to replace the carpets/curtains, which are six years old and also redecorate throughout, quite expensive as a lot of the wallpaper needs removing.

The kitchen was left with badly damaged units, for which I have an estimate to repair. As the kitchen is old I decided to replace everything.
The bathroom is again old and I decided to replace everything.
I have replaced the door locks as the tenant failed to return all the keys.

I have made a claim against her deposit for the above and other things.

Am wondering what I can claim against profits. I have already done the five year electrical and gas checks and have these to claim and a few other repairs.

Although all is above board I don't want to 'rock the boat' and be involved with an HMRC investigation as to why my expenses are huge. Living the other side of the world could be pain for me.

Thanks

[GlobalTaxAdviser]

Hi John

Sorry to hear about your troubles with a nightmare tenant.

With the 10% wear and tear being abolished you can claim for most things including carpets and curtain

However, with replacing kitchens and bathroom you have to be careful between revenue and capital expenditure.

Basically withe the kitchen is replaced with similar items then that is revenue but if it upgraded say additional cupboards etc then it may deemed to be capital. Though if upgraded to nearest modern equivalent that maybe acceptable as revenue. Any way if capital you can offset it against capital gains tax should you sell the property

You will have to count the deposit as income.

Kind Regards

GTA