House let for many years was in need of major refurbishment after the last tenant left and caused a lot of damage (damp treatment, roof replacement, damage to central heating and electrical works etc, redecoration, replacement of kitchen, flooring etc) to the region of £35k. Given the substantial amounts involved, is the expenditure revenue or will HMRC treat as capital given the fact that the house could not be let without this work carried out? thanks.
Related resources
Replies (1)
Please login or register to join the discussion.
What are the owner's intentions?
Is he doing up the house in order to sell it or to let it again?
If the latter, most of the remedial work could be regarded as revenue expenditure with the caveat that if the work included any element of improvement (roof replacement, kitchen replacement ?) that element should be treated as capital expenditure.