Rear extension tax treatment

[taxaminute]

Hi All,

Wanted to ask your thoughts on a property that has had a rear extension.

Before the extension there was a small kitchen in place about 10ft by 10ft. The new kitchen is approximately 10ft (depth) by 25ft.

There were kitchen appliances (washing machine, fridge etc) in the old extension but these were dated and not worth keeping so replaced with new items. (i've treated as revenue expense)

Would I be able to claim part of the extension as revenue expense and then apportion the remainder to capital. e.g.

old kitchen 10x10ft = 100 sq ft
new kitchen 10x25ft = 250 sq ft
cost for extension (example number to make calc easy to follow) £10k

area => 100/250 = 40% x £10k (extension cost) = £4k revenue and £6k capital

Thanks for your thoughts and time.

[bd6759]

No.

The cost of the extension is a capital cost. You cannot apply a notional repair cost to it. (Lawrie v CIR).

[taxaminute]

Thanks for the quick reply