Can I claim a new roof on rental property as a taxable allowance?

IamwhoIam_3

My letting agent did an inspection of my rental property and told me there was an issue with tiles slipping of the roof and damp in one of the bedrooms. I had it inspected and was advised that the roof joists were rotting and there were tears in the roof membrane causing the damp in the bedroom.

To repair this would cost £1500 But I was advised by 3 separate company's' that this would only be a temporary repair lasting approx 12 months and that the whole roof should be replaced at a cost of £5500.

I have looked on the HMRC website which seems to imply that a new roof is an improvement not a repair but replacing the roof seems to be the best option.

Can anyone advise me if I can claim the total cost of replacing the roof as a taxable expense or whether I can only claim the £1500 which would be the cost of the temporary repair?

Thanks

Strapped

Initial thought was CapEx, but then, reading this http://www.hmrc.gov.uk/manuals/pimmanual/pim2020.htm suggests it may be possible to treat it as repair...so worth a specialist opinion.

Esp this: "
Repairs to let property

To decide whether expenditure incurred on ‘repairs’ to property is allowable, the first step is to identify the ‘entirety’ that is being repaired. The doctrine of the ‘entirety’ has been well summarised by Buckley, LJ in Lurcott v Wakeley (1911) AER 41 as follows:

" Repair is restoration by renewal or replacement of subsidiary parts of the whole. Renewal, as distinguished from repair, is reconstruction of the entirety, meaning by the entirety not necessarily the whole, but substantially the whole subject matter under discussion... it follows that the question of repair is in every case one of degree, and the test is whether the act to be done is one which in substance is the renewal or replacement of defective parts or the renewal or replacement of substantially the whole."

In the case of residential accommodation we accept that the ‘entirety’ will normally be the house or the block of flats that is let. So if your roof is damaged and you replace the damaged area, your expenditure is allowable."

jjlandlord

It seems the roof needs replacing. I believe that if the £5,500 is really just to re-instate the roof as it was, without alteration or improvement then it is an allowable revenue expense.

Considering the sum, probably a good idea to speak to an accountant.

Strapped

As above, specialist tax advice would be best, but just to say, if you only just bought the property in this state, and you need to replace the roof to let it, then that might muddy the water (ie suggests CapEx rather than repair).