Are Council mandated improvements deductible from income or a capital expense?Make Text Bigger
Following a change in regulations in January 2017, my Council have insisted that I upgrade a fire alarm in my HMO. It will cost £000’s, which is fine – especially if I can deduct it from income tax rather than capital gains!
The alarm was formerly compliant and the expenditure is non-discretionary. “Spending to preclude illegality” is not my idea of an improvement to the property – it seems more like maintenance to me. It’s certainly not adding a swimming pool.
How would HMRC see it – deductible from income or capital expense
Any thoughts appreciated.
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