Pre-letting costs

19 October 2010

Issue: 4277 / Categories: Forum & Feedback , Income Tax

An elderly client has had to move into a nursing home and her house is to be let to provide an income. Can the costs that have been incurred to make the property suitable for letting be allowed against income?

I have an elderly client who has had to go into a nursing home. Her family decided that the best course of action would be to rent out her home to provide an income which could then be used to help pay the nursing home fees.

However the estate agents advised that before her bungalow could be let it would have to be completely modernised and brought up to date.

The costs of refitting the bathroom kitchen and central heating are I assume not allowable.

However a lot of the costs were of a repair nature i.e. decorating retiling the bathroom and kitchen gutter clearance boiler service and safety certificate roof repairs and rewiring of the electrical circuits and supply.

Are any of these pre-letting costs available to offset for tax purposes against the subsequent rental income?

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