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Holiday let repairs or capital expenditure

09/05/2019 10:49:40
I have owned a holiday let for 6 years and have recently undertaken some work on it, with some additional work now planned. I would like to understand whether certain items are allowable repairs, capital expenditure allowable for a holiday let, or capital expenditure only allowable against eventual capital gain.

-Replacement of decking /steps attached to house.

-Replacement of certain wall and downlights (new LED lighting replacing halogen) and new current technology consumer unit replacing 25 year old equivalent

-Replacement of guttering and repairs to mortar

-Replacement of sofa and induction hob (originals acquired with house)

Thanks
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Re:Holiday let repairs or capital expenditure

09/05/2019 12:16:17
Hi,

Thanks for your question.

Please see the following for guidance on what is regarded as a repair and allowable as a deduction in computing the profits, or whether the alteration is regarded as capital expenditure and therefore not allowable against the profits.

BIM46915

The following is for guidance on what is allowable as a repair when different materials have been used.

BIM46920

The following covers what can be regarded as a repair because of changes in technology.

BIM46925

The question to ask is whether, looked at in the round, the work resulted in a restoration of what was there before, or did it create something new and change the character of the property.

I hope this helps.

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