Have you repaired or improved from what was there originally? If repair it's tax allowable, if it is an improvement you can't
The general position is that the cost of a repair is normally allowable expenditure, but replacing the asset or making a significant improvement to the asset as a whole (the 'entirety') will be capital expenditure and not allowable as a deduction.
More details:Repair means the restoration of an asset by replacing subsidiary parts of the whole asset. An example is the cost of replacing roof tiles blown off by a storm. There wont be a repair if a significant improvement of the asset beyond its original condition results - that will be capital expenditure. For instance, there will be a capital improvement if the taxpayer takes off the roof and builds on another storey.
A repair is normally a revenue expense that can be deducted in computing rental business profits.
These are normally deductible
exterior and interior painting and decorating,
stone cleaning,
damp and rot treatment,
mending broken windows, doors, furniture and machines such as cookers or lifts,
re-pointing,
replacing roof slates, flashing and gutters.
The cost of land and any buildings on it is capital expenditure. So is the cost of any new buildings erected and any improvements.
capital expenses NOT deductible include:
expenditure which adds to or improves the land or property; for example, converting a disused barn to a holiday home,
the cost of refurbishing or repairing a property bought in a derelict or run-down state,
expenditure on demolishing a derelict manufacturing building to clear space for a new office building;
. the cost of a new building,
the cost of building a car park next to a property that is let,
expenditure on a new access road to a property
Head sore yet?
You did ask!