Readers’ forum: Effect of squatters’ occupation on tax deductions

For many years my client has been letting out a property. His last tenant – who had been renting for several years – gave notice that he was vacating the house so my client thought that he would take the opportunity to redecorate and carry out some updating work.

Unfortunately while the property was vacant a family of squatters moved in. Despite my client approaching the police for help he had to take civil action through the courts to obtain possession. This took several months. My question is on the tax treatment of the redecorating and updating costs that my client now wishes to go ahead with. My understanding is that if the property is let again after the works are complete then the costs will be deductible from the future rent.

However my client has found the whole experience so disheartening that he is now...