Carpet replacement - allowable expenditure in BTL?

[section 44]

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]

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...

[section 44]

... 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