Re-roofing a let property - can I offset cost to reduce tax?

ET1976

The freeholder of a property I rent out is having it re-roofed (despite there being nothing wrong with the roof). Their justification for this is that there is no insulation under the current tiles. As part of this work they will also be replacing all the tiles (which don't need replacing, but they have a policy not to reuse any tiles they have taken off). This is the information they have given me about what will be done:

"The roof will be stripped back to its skeleton, new tanalised battens and vapour permeable underfelt will be installed, and then covered with new tiles."

As I will have to pay for this, I was hoping to be able to offset the cost against my taxable income from the rent, but would this be classed as improvement rather than maintenance as they are putting insulation in? I would have thought that the replacement of the tiles would be maintenance, but I couldn't apportion the cost of each part as I am just paying a lump sum for the whole job to the freeholder.

Any advice gratefully received.

marcg

You need a specialist tax advisor for this but on the technical issues:

1. Why is the work being done? There is no retrospective law demanding roofs be insulated. If it's not at the moment then there is no justification for doing it.

2. if the work does need doing then don't argue about reusing tiles (unless they are less than 25 years old). Tiles are pretty cheap and having new ones increases the value of the house and, for the life of the roof, is a good investment.

3. The work described doesn't mention anything about insulation - it's just about refelting the roof? This is general maintenance - if the old felt has failed then it's only a matter of time until the roof starts to leak and damage the rest of the property.

4. If there is insulation involved then (and I don't know much about tax) I would imagine you could claim the rest (ie everything apart from the insulation) as maintenance. I think all you would need is a breakdown from the freeholder - which they should give you anyway since otherwise they can't justify the costs.

1984ReturnsForReal_2

As this is a cost incurred to you that you have little or no control over I would of thought it is deductable in full.

Your not authorising the work.


But, I know zilch about accountancy on a rented leasehold property...