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Rental property repairs - asset or renewals/repair

When replacing items such as boilers, carpets, kitchen and doors in rental properties, are these classed as repairs/renewals in P&L or as assets property improvements?  We arent talking big money, under £5000.


Many thanks!


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20th Nov 2017 11:41

Boilers, kitchen and doors are repairs to the property, provided that any element of improvement is just down to changes in the state of the art.

Carpets will qualify for relief under s 311A after 5 April 2016.

Technically, I think that they qualified under s 68 before that, but not everybody (including HMRC) agrees. Helpfully, the ICAEW and CIOT gained HMRC's official disagreement.

Thanks (1)
20th Nov 2017 13:49

As I explain to my assistant, if there was one there before and there is on there now doing much the same as the old thing, its probably a repair.

To put it another way, if you own a house for 30 years and replace the kitchen 3 times there are not 4 kitchens at the end of it.

Thanks (0)
to ireallyshouldknowthisbut
20th Nov 2017 14:58

Speak for yourself, we have seven and are working on an eighth, this one will be used exclusively for soup.

Thanks (2)
to Duggimon
20th Nov 2017 15:11

A soup kitchen ?

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to lionofludesch
20th Nov 2017 15:25

It's not funny, when it has to be explained!

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