Allowable expenses to take off rent before tax

[darwinsfoot]

Hi,

I am just about to complete on a one bedroom flat that I will be turning into a two bedroom flat and there is some other stuff that needs attending to before I rent it and I have a couple of questions.

What expenses can come off any profit from rent before it is taxed? Basically the work involved at the flat will be in the order of:

£3500 to re-arrange the flat and turn it into 2 bedrooms

£2000 to put in a badly needed new bathroom

£4000 to sort out damp related problems

£1500 to put in carpets

£3000 to redecorate

can any of this be taken off of any profit from the rent? And what else can as a rough guide? And of course please recommend any websites that go through all of this stuff if it is easier...

Any help would be much appreciated...

Nick

[Worldlife]

A good start would be to visit HM Revenue and Customs (http://www.hmrc.gov.uk/sa/forms/net-04-05.htm)

Download from the Land & Property Section:-


Land and Property Pages - SA 105
Notes on Land and Property SA105


Please note the form has not yet been updated for the tax year ending April 2006 but it has remained the same for many years. The notes are very useful.