The cost of buying a property for many of us is becoming increasingly prohibitive, but if you rent does that mean your standards have to slip when it comes to the interior design?
Your kitchen is the heart of the home, but what happens if the heart is old, worn, and tired? Can you claim a replacement kitchen on a rental property?
Does a landlord have to provide a new kitchen?
There are good and bad landlords. Some will be more than happy to make improvements to the home you are renting, while others won’t bother to do anything unless there’s an emergency situation or they need to do something stipulated by law. In fact, they do not have to make any improvements unless they are required to and most certainly won’t be rushing to install a new kitchen if you decide it is not up to scratch. Having said that, the landlord is responsible for making most repairs to your home and they can offset the costs of a kitchen renovation so it is definitely worth the ask.
Can I claim the cost of renovations on my rental property?
One thing is essential before you consider making renovations on your rental property and that is to consult your tenancy agreement. Far from claiming back the cost of renovations you could find yourself completely out of pocket if a landlord wants you to revert the property to its original state when you leave. Many landlords will include a section in the tenancy agreement to prevent you from carrying out any renovations, simply because it could impact on the rental in a number of ways.
Can you claim replacement kitchen on rental property?
The big question is, “can I claim a new kitchen on a rental property?” to which there is no obvious answer.
Potentially you can, but there are certain factors which may prevent you from embarking on a kitchen project as a tenant.
One of these is the length of your lease. If you have agreed with your landlord to only stay a few months, then you might not be living in the property long enough to benefit from your new kitchen. Similarly, many private tenants have an assured shorthold tenancy which can be ended quite easily using a Section 21 eviction process. Another downside could be that once you’ve installed a dream kitchen, your landlord will be so impressed that they’ll actually put the rent up as a consequence.
Council or Housing Association tenants are in a much better position when it comes to a kitchen revamp but you need permission before you embark on the work.
You should:
Ask your landlord if they are planning to make improvements to the property.
Always check your tenancy agreement to see what is stated about improvements such as a new kitchen.
Talk to the landlord and explain what you would like to do.
Maybe get your landlord to agree to a rent reduction for a set period of time to offset the cost of a new kitchen.
Get them to agree to share some of the expenses.
Or they could green light the work as long as you return the kitchen to its former state (which admittedly would seem counter-productive; however some landlords could use the renovations as an excuse to withhold your deposit).
Is a new kitchen a capital allowance?
For a landlord to secure tax relief on a rental property the expense must not be capital expenditure. Let us explain further. Capital expenditure is when you add something to the property that didn’t exist before or upgrading something like a kitchen. If improvements are made to the rental that will basically increase its value, then this is capital expenditure. It’s an asset and that means tax relief on any part of the cost is not allowed.
The way it can become a capital allowance is that if the new kitchen is match for match like the old one. This means it needs to be the same size, standard and layout – so if you open out the room into a kitchen diner and add and island you can not claim it as a capital allowance whereas if it’s the same and is installed after the letting business has got underway then the cost can be set against rental income.
But here is no doubt that kitchen improvements not only enhance the lives of those living in a home and they can also boost the value of a property. So, whether you are a landlord or a tenant and need advice on the next stage of your kitchen renovation we are here to help.
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