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hi there this video is to look at rental property and whether something is a repair or a capital spend my names louise harrington and i run performance accountancy so when you first take on a property with a plan to let it out you are bound to want to do some work on it may need to make it just that little bit more special and possibly a little bit more rentable you expect to be able to offset these costs against your rental income in the year but well sometimes that is just not the case so initial refurb costs are not allowable at all so these are costs that you spend prior to making the property rentable or you actually have the rental purposes out there but hang on to the receipts because what will happen is when you come to sell the rental property potentially youll have capital gains tax and the element of purchase costs etc would be not only the cost of the property but also any of the work you did on it to make it up to a standard to get it to be able to be rented its the sam