Last week I posted asking aboout S20 works. The client had forwarded me a 'demand for payment' from surveyers in excess of yearly rental income.Since this time I have received documentation from the client detailing the work performed. Basically all the outside of the flat had fallen into disrepair and the surveyors via the freeholder had served all leaseholders with the same Notice demand to pay and it would have been awkward for one leaseholder to refuse to pay. Looking at the detailed schedule it is to me all covered by PIM2030 - Deductions: repairs: is it capital? To me it is all repairs and maintenance and satisfiies the replacement of the whole or simply repairs. Obviously, my issue is that I have a property loss and repairs in excess of rental income. Do colleagues ever offer their explanations in the part of the tax return that asks for 'Any other information for other property income'? How wary should I be of admitting all the costs as these are incurred outside of he property which to me seem logical and fair on the grounds of exterier/damp treatment/stone/roof etc?
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A note in the white space would suffice. I usually just give a brief breakdown of the larger costs and explain the revenue nature of the repairs. In a block of flats it is not unusual for major expenses to be incurred for the whole building once in a while.