PostedWed, 18 Oct 2023 13:18:36 GMTbyHMRC Admin 32
Hi,
One of the key considerations when deciding whether a repair is a deductible expense is whether it is revenue or capital. Revenue expenses are generally repairs and maintenance (property repairs). Examples of this are replacing a boiler, re-wiring, windows, roof, kitchen & bathroom and so on. They do the same thing as before.
Capital expenses are considered to be improvements, such as structural changes, eg new conservatory, extension where there was nothing there before.
A new state of the art, bespoke kitchen can be considered capital, when it replaces a standard kitchen and is an improvement over the old kitchen, for example an old all in one cooker is replaced with designer hobs and fitted ovens.
It is largely a question of fact and degree in each case, whether expenditure on a property leads to an improvement.
PIM2030 - Deductions: repairs: is it capital?
Thank you.
