Capital vs Revenue Allocation, Property Let

[langtonbrow]

I have a rental property with a life expired shed used by the tenant. This requires renewal (on a like for like basis) as repair is no longer possible, due to severe degradation. Given that a replacement is not an "improvement" this should be covered as an allowable revenue expense rather than a capital improvement, I would think.

Does anyone have experience or knowledge of a similar situation to this?

with thanks
P

[section 44]

sounds like you are repairing and maintaining your let property

[langtonbrow]

I would agree with that. Seems like an acceptable tax allowance.

[bd6759]

I disagree. He is clearly replacing a capital asset.

[langtonbrow]

It is an expendable item. Doesn't last forever, just like a lightbulb. Maintenance is not feasible.

[bd6759]

Repairs are allowed. Replacing a light bulb is repairing a light fitting.
The replacement of a strcuture is capital expenditure.

[langtonbrow]

Perhaps I will repair rather than renew then. Will probably cost as much as a new shed though. Many thanks.

[section 44]

Replacing a light bulb is repairing a light fitting.

... or perhaps maintaining/repairing the property