Are pre-letting marketing costs allowable against tax?

[sheri1000]

My accountants said i cannot claim as an allowable expenses any expenses incurred before the flat is marketed for letting. Is this correct? I need to paint the property and even if my labour is not an allowable expense why isnt the paint I have to buy?

[bullybantam]

Stick a small ad in a newsagent window offering property for let.

That's it on the market;)

[Telometer]

You are confused.

You could either buy a cheap and grotty property and do it up before renting; or buy an expensive and ready-to-rent property. The costs will be similar, the tax treatment should therefore be identical. Hence your painting costs etc. are probably capital.

However, the costs of letting, council tax, electricity etc. should be allowable.

Bullybantam is no help to you!

[mind the gap]

Bullybantam is no help to you!

I agree. S/he is even more confused than OP.