Apportion refurb costs against both capital value and costs
Hi - i've spent around £45k on a refurb for a HMO.
And I'm a private landlord, not a co.
I want to apportion approx £30k of that to the capital value of the building (ie stop the revenue taxing me on my purchase price if and when I sell) and put about £15k as running costs, ie the paint and dec, the carpets, appliances, furniture etc that would naturally have to be bought.
The £30k goes on new house structure, new bathrooms, damp proof, new roof etc, structural items that should increase capital value of the property.
I'm used to putting costs down against my income, but how do I tell the revenue I've upgraded the houses using my own cash....
So that (for example) I bought the house for £100k. I increased its capital value to £130k, so if I sell it in 5 years for £160k, the revenue only chargme me cap gains tax on the £30k, less allowances, not the full £60k they may think, if they look at the purchase price.
thanks in advance .... there must be a way of doing this.
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