Sarah Bradford considers the extent to which tax relief is available for the costs of renovating a property.
Buying a property to renovate can be appealing for a number of reasons. For example, there is the possibility of making a profit from ‘doing it up’, as well as the chance to put your unique stamp on a property.
However, such a venture can be expensive, and it is prudent to ensure that you obtain any tax relief that is available for the associated costs.
Trading or investment?
Before looking at the available tax reliefs, it is necessary to consider the renovator’s intentions.
For example, are they buying the property in the hope of making a quick profit, is it a home, or are they planning to let it out once renovated, either as a residential or