Teasing out a possible strategy for a property which will shortly become vacant (tenant relocating).
Its time for it to have a decent overhaul; bathroom, kitchen & the like.
I'm considering doing the renovations over a longer period of time & possibly not reletting until the 2 year period is up so that I can then relet at market rent.
Difference between current rent & market rent (with renovation) is double; so waiting to get back to market rent is not as mad as it might sound.
Here's my question - are my renovation costs carried forward for tax relief?
For example (invented figures)
Can I carry forward my 25k reno costs into 2025 /2026?
Its time for it to have a decent overhaul; bathroom, kitchen & the like.
I'm considering doing the renovations over a longer period of time & possibly not reletting until the 2 year period is up so that I can then relet at market rent.
Difference between current rent & market rent (with renovation) is double; so waiting to get back to market rent is not as mad as it might sound.
Here's my question - are my renovation costs carried forward for tax relief?
For example (invented figures)
Year | Rent | Reno |
2023 | 5k (part year) | 10k |
2024 | 0 | 15k |
2025 | 15k (part year) | 0 |
2026 | 30k | 0 |
Can I carry forward my 25k reno costs into 2025 /2026?