Is it an allowable expense or capital expense

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    Is it an allowable expense or capital expense

    I rent out a single property, during the winter storms the brickwork was damaged and the cheapest option to repair it was to render the Gable end and rear of the property. I tried to claim on the insurance but they maintained it was due to wear and tear, I am of course disputing this. My question is would this be classed as an allowable expense or a capital expense, if capital would I have to declare it on my Self assessment form?

    Thank you.

    shipboard

    #2
    I'd say that's a maintenance cost and would be allowed against income.
    It would affect the value of the property, but only to restore it to the level that it was at prior to the damage (plus the general positive effect of any large maintenance work).
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      #3
      I agree with jpk : it is a maintenance expense which is claimed against rental income.

      Comment


        #4
        I think the insurance company were right-the render must have been distressed to suffer storm damage. You can offset cost against income.

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          #5
          If you dont mind me suggesting, If your Insurance Company is rejecting your claim you could get in touch with a Chartered Loss Assessor who would argue with the Insurance Company Loss Adjuster, its worth a phone call to one.

          Comment


            #6
            Can't see any reason this would be an insured event. Agree it is not a capital expense at all.

            Comment


              #7
              If rendering were done in the iast decade, it would one.

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