What tax relief can I claim on property repairs?

Firstly, it’s important to determine the following points: 

• What state was the property in when you purchased it? What it in a fit state for renting out, or was some of the work carried out to get it to a fit state? 
• What type of property you are renting out? Furnished, unfurnished or a Furnished Holiday Let (FHL)? 
• Are the expenses you have incurred repairs to the building/furniture or improvements or enhancements? 

If you purchased a property that required work so that it was in a fit state to rent out, it is likely that these expenses are of a capital nature and therefore can’t be claimed against property income on your self-assessment tax return. 

Capital expenditure should be recorded and kept separately. If or when you come to sell the property you may be able to factor it in to any Capital Gains Tax (CGT) calculations. 

For unfurnished or furnished residential properties, you may carry out repairs on your property. Some of these repairs will be available for tax relief, these are the smaller repairs and maintenance costs and replacements. For example, decorating, fixing broken windows, repairing gutters and replacing roof tiles. 

Other repairs that are property improvements and enhancements can’t be claimed as property repairs on your self-assessment tax return. These include extensions, adding a conservatory, replacing the kitchen with an upgrade and upgrading the central heating system. 

You may be able to claim Replacement of Domestic Items relief. This relief is available for expenses incurred from 6th April 2016, where an old domestic item is replaced. There are other criteria to be eligible for this relief and you should consult your accountant. If the replacement is an improvement you can only deduct the cost for purchasing a like for like item. 

Furnished Holidays Lets are treated as a trade and are entitled to capital allowances. This allows FHL businesses to deduct capital expenditure when incurred on their tax return. FHL businesses are not able to use the Replacement of Domestic Items relief. 

For more information on landlord tax and allowable expenses read our guide. 

If you would like any further guidance in this area please contact us on 01423 871 870 or use our simple online contact form to arrange a free initial consultation. 

Date published 7 Feb 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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