Hi,

I let two rooms out in my own home, and as I am not using the
rent-a-room tax allowance, I deduct 2/3rds of expenses against the
income.

I understand that repairs are an allowable expense, but need a more
precise definition

I'm wondering if the following are allowable:
- Replacement of lock and keys as tenant has lost theirs, hence
security risk
- Decoration/Painting of lounge, as was in need and in poor condition.

I've looked here:
http://tinyurl.com/32ytqb
but I'm still not sure.

Thanks for any pointers

zeebop

zeebop wrote:

> I let two rooms out in my own home, and as I am not using the
> rent-a-room tax allowance, I deduct 2/3rds of expenses against the
> income.
> 
> I understand that repairs are an allowable expense, but need a more
> precise definition
> 
> I'm wondering if the following are allowable:
> - Replacement of lock and keys as tenant has lost theirs, hence
> security risk
> - Decoration/Painting of lounge, as was in need and in poor condition.

If the lounge is shared equally with your tenants, you can set 2/3 of
the redecorating costs against rental income.

Lock and keys should be wholly deductible (not just 2/3), but you would
really expect the tenant who lost the keys to bear the cost.

On Sat, 10 May 2008 13:49:04 GMT, Ronald Raygun
<no.spam@localhost.localdomain> wrote:

>zeebop wrote:
>
>> I let two rooms out in my own home, and as I am not using the
>> rent-a-room tax allowance, I deduct 2/3rds of expenses against the
>> income.
>> 
>> I understand that repairs are an allowable expense, but need a more
>> precise definition
>> 
>> I'm wondering if the following are allowable:
>> - Replacement of lock and keys as tenant has lost theirs, hence
>> security risk
>> - Decoration/Painting of lounge, as was in need and in poor condition.
>


>If the lounge is shared equally with your tenants, you can set 2/3 of
>the redecorating costs against rental income.
>
>Lock and keys should be wholly deductible (not just 2/3), but you would
>really expect the tenant who lost the keys to bear the cost.

Thanks for that - I was wondering if decorating would be termed an
'improvement' and therefore not deductible.

zeebop wrote:

> On Sat, 10 May 2008 13:49:04 GMT, Ronald Raygun
> <no.spam@localhost.localdomain> wrote:
> 
>>zeebop wrote:
>>
>>> I let two rooms out in my own home, and as I am not using the
>>> rent-a-room tax allowance, I deduct 2/3rds of expenses against the
>>> income.
>>> 
>>> I understand that repairs are an allowable expense, but need a more
>>> precise definition
>>> 
>>> I'm wondering if the following are allowable:
>>> - Decoration/Painting of lounge, as was in need and in poor condition.
>>
>>If the lounge is shared equally with your tenants, you can set 2/3 of
>>the redecorating costs against rental income.
> 
> Thanks for that - I was wondering if decorating would be termed an
> 'improvement' and therefore not deductible.

No.  Improving something doesn't just mean making it better than it
is, otherwise any repair would also be an 'improvement'.  It means
making it better than it ever was.

Redecorating is like 'repairing' (or carrying out routine maintenance
on) the decor.  Decor, like a washing machine, is expected to wear out,
and when it has done, it is 'broken' and in need of 'repair'.  By the
same token, replacing worn out carpets is deductible.

'Improvement' is about upgrading the *specification*.  So if your
redecorating were to involve moving from basic painted lining paper
to William Morris wallpaper, or from ordinary wall to wall carpet to
varnished floors and Persian rugs, that would be an improvement, but
if at the time of the upgrade the items were due for replacement
anyway, then what it *would have* cost to replace like for like can
be counted as "repairs and maintenance", and only the excess would go
in the "improvement" category.