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redecoration of a newly ‘bought to let’ property. Is the expense deducted from the accrued rent to calculate the business property income?
It’s very subjective. If you come to conclusion that this redecoration is capital expense then you shouldn’t deduct, if it’s just repainting the walls etc. then it can be deducted. I was watching OT video lesson about that and the tutor actually said that it’s “grey area” and if in the exam you give logical reasons of your conclusion then you should still get marks.
In BPP Text example (page 73) redecoration is deducted (for property No 27).
I am more inclined to say this is a business expenditure as it can be classified under repairs and maintenance.
However I think in reality in can depend on the original state of the property, If the property was bought in a very bad state state and needed a major works, then I would be inclined to say this is a capital expenditure.
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