Replacement conservatory roof - capital or revenue

P1gy4

Hi all,

First time poster, and relatively new landlord...

My rental property had a severely leaky conservatory roof, to the point my tenants refused to habit the conservatory.

Despite trying an abundance of repairs, I was unable to stop the leaking for any length of time. So, on the advice of a trusted glazing company, I replaced the conservatory roof.

Can I deduct this from my tax bill, or is it capital?

I'm hoping it's revenue, as I was unable to resolve it any other way. Also, to be honest the replacement roof isn't as "nice" as the original - obviously it is now water tight though.

Any advice will be greatly received.

Thanks,

Kynthia

Replacements are revenue. You would need to make an improvement to the property, beyond replacing something with a version that is common today, in order for it to be capital.

anselld

P1gy4 wrote: »

Can I deduct this from my tax bill, or is it capital?

,

You cannot "deduct it from your tax bill". You can deduct it from your rental income prior to calculating your tax bill.

00ec25

it is a revenue cost, as kynthia says above, it is fundamentally a like for like replacement with no significant element of improvement

the capital asset is the whole conservatory, its roof is merely a part of the asset and so the replacement of the whole of its roof is merely the repair to a part of an asset to return it to the condition it was in before, ie a conservatory with a functional roof. As such that is revenue, even if the glass used was super doooper high end something or other compared to the plastic you had before that too would still be revenue as the super dooper bit would fall under the "technological advances" concept embodied in when an item remains revenue rather than being an "improvement" per se.