Repairs Or Improvements?
When it comes to property renovation, projects fall into one of two categories: repairs or improvements.
The term repairs is used for adjustments that are mainly concerned with maintenance, rather than enhancement.
In comparison, work that involves substantial more outlay is referred to as an improvement.
Although both categories overlap, the predominant deciding factor is the purpose of the project. If the changes are likely to increase the property resale value significantly, then HMRC classes them as ‘capital improvements.’
It appears that repairs are considered to revolve around returning objects to their original state, rather than enhancing them for the purpose of profit...
Examples Of Tax Deductible Repairs
Although there are no hard and fast rules with regards to what constitutes a tax deductible repair, the following list gives a clear indication of developments that fall within the remit of repairs:
- Exterior and Interior Painting and Decorating
- Stone Cleaning
- Damp and Rot Treatment
- Replacing Roof Slates, Flashing and Guttering
- Mending Broken Windows, Doors, Furniture and Appliances