Renovations: capital or revenue expense?
Tax Planning and Financial

1 Thanks
20 Posts
9 years ago
On reading forums and HMRC site, I have a question about how to account for renovations. I understand that renovations (eg new kitchen/bathroom) which are done prior to first letting a property counts as capital to bring it up to standard to rent out. But elsewhere on the HMRC site, it seems that once you've started renting, you are a 'rental business', so further renovations (to any property) would be revenue expenses as part of the business. So on my third property that I renovated before renting it, those renovations can be revenue expenses and not capital. Can anyone confirm or clarify this position?

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