Are "Major Works" enforced by freeholder a taxable expense?

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R
richdorm
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I let an ex Council flat in a block which has been liable for quite high Major Works charges this year: over 13k!

I realise that repairs are an allowable expense against income tax for rented property. At the same time, improvements are generally treated as a capital asset, which should be deferred until sale of the property, at which point they can be set against CGT.

The Council's works in general have not been urgent repairs, but a mixture of on-going renewal and improvements. In some cases, they renewed things that, frankly, didn't need it (ie the roof) but they said it was more economical to do this all in one hit, rather than erect all the scaffolding again in 5-15 years time.

But for me, paying for the works WAS essential - I had no choice in the matter. Furthermore, there were no "improvememts" to my property as it already had double glazing anyway.

My Question: Can I offset the amount I paid against tax - or would it count as a capital expense?

My inclination, and preferred option, is the former, but I'd be interested to hear the views and experience of others.

Many thanks.
22/02/2016 17:43

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