My wife and I have recently bought a small property with our savings. We intend to let it out, but first it requires some work (kitchen, bathroom, complete decoration, etc.). For some work, like roof repairs and electrical works I will pay professionals, and offset that against expenses. Most of the other work I will carry out myself. I've planned for it to take me four months. I'm currently unemployed, hence the project. I would like to know whether, if I'm drawing on savings to support us and pay the home bills, could this be seen as income; would I end up paying basic rate, or can I offset it against capital gains when and if we decide to sell? I just wondered the most efficient way to manage this.

Arthur Weller replies:
Firstly, drawing on savings is not considered income, so there is no tax liability on such withdrawals. Secondly, your own labour on your own investment asset is also not considered income. Thirdly, your own labour is not an allowable expense, both for rental income tax purposes (see http://www.hmrc.gov.uk/manuals/sdltmanual/SDLTM00370.htm) and also for capital gains tax purposes (see www.hmrc.gov.uk/manuals/cgmanual/CG15210.htm).