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Where Taxpayers and Advisers Meet

Repair or Refurbishment

WINDSURFER
Posts:14
Joined:Mon Oct 05, 2015 6:16 pm
Repair or Refurbishment

Postby WINDSURFER » Sat May 08, 2021 2:06 pm

Hi All
I have a rental property (flat) which has a bathroom water leak to the property downstairs and various problems have been repaired several times. I have now been advised by the property management maintenance team that the bathroom is beyond repair and needs a total refit ( suite, tiles, flooring) to guarantee the leaks are resolved.
The maintenance team have also advised that the kitchen is 'falling apart' beyond reasonable repair and also needs to be replaced. Both kitchen & bathroom are original & almost 40 years old.
My question is whether the bathroom & kitchen refits are considered to be non tax deductible renovations or deductible repairs as I have no choice but to replace them both.
Thanks for any advice.

Jholm
Posts:155
Joined:Mon Mar 11, 2019 4:22 pm

Re: Repair or Refurbishment

Postby Jholm » Mon May 10, 2021 8:56 am

As a general rule, any renovations that are 'like for like' are allowable.

Modernisation alone does not mean it is disallowable.

If you totally revamp and reimagine the kitchen/bathroom and take it far beyond what would be expected for it's modernised counterpart, then it would be deemed capital.

pawncob
Posts:4676
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Repair or Refurbishment

Postby pawncob » Mon May 10, 2021 11:01 am

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2030
With a pinch of salt take what I say, but don't exceed your RDA


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