Client has owned and rented out a large two-storey residential flat for some years but has now decided to split the flat into two, one on each floor. The lower floor contains a large kitchen/dining room, a bathroom and a reception room. The upper floor is three further bedrooms.
The work involves relatively little change to the lower floor: refurbished bathroom and kitchen and redecorating. The kitchen/diner becomes the reception room and the former reception room becomes a bedroom. The upper floor, however, has had significant changes to it: new bathroom/kitchen, etc.
BIM46950 talks about the character of the asset which has obviously changed overall, but not the lower floor. BIM35465 talks about notional repairs, but I do not think this is necessarily relevant here, although the example given at BIM46930 does have some resemblance.
If we could show expenditure that was specific to the work on the lower floor flat could we reasonably claim that part as revenue? What do members here think?