Capital cost vs allowable expense?

Capital cost vs allowable expense?

0:03 AM, 30th January 2023, About A year ago 5

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Hello, Would reinstatement (like for like) following an accident to a property be considered a capital cost or allowable expense vs income?

My instinct is to view it all as maintenance/repair because there was damage which needed attention to get it back to how it was prior to the accident.

However, if the damage was too great and what needed to happen (with part of the works/costs) was a total replacement (albeit like for like: the building is in a conservation area so cannot be materially changed…) would this be viewed as a capital cost by HMRC?

It is a balcony that needed replacement railings plus waterproofing to the balcony.

I would view the railings and balcony as one unit (couldn’t have the balcony without the railings as people would fall off it!) and so even if the railings were replaced in their entirety, then it would be viewed as a repair to a single unit?

I’d be interested in people’s thoughts.

I do not have any desire for one outcome or the other, just want to do what is correct and find this such a grey area!

Thank you,


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Dean Warner

10:48 AM, 30th January 2023, About A year ago

That's a repair in my book, you're maintaining something that's already there, not installing as an additional feature

Jeff Niehorster

17:26 PM, 30th January 2023, About A year ago

Reply to the comment left by Dean Warner at 30/01/2023 - 10:48
I agree totally with Dean.
In a similar vein, I believe replacing old timber windows with double glazed Upvc to enhance an EPC rating is also against revenue not capital

Reluctant Landlord

11:03 AM, 31st January 2023, About A year ago

Reply to the comment left by Jeff Niehorster at 30/01/2023 - 17:26
whereas replacing completely rotten wood windows with UPVC is capital expenditure?

Jeff Niehorster

12:21 PM, 31st January 2023, About A year ago

Thanks,can you please explain why that is.
What about replacing a worn out kitchen,do you think that is capex

Jireh Homes

9:43 AM, 4th February 2023, About A year ago

Consider both changing wood windows to uPVC and replacement of kitchen to be revenue expenses, as replacing what already exists.

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