The key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature.

In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the following list of examples of deductible items:

1. •

   exterior and interior painting and decorating

2. •

   damp and rot treatment

3. •

   mending broken windows, doors, furniture and machines such as cookers or lifts

4. •

   repointing

5. •

   replacing roof slates, flashing and gutters

6. •

   deep cleaning

7. •

   replacing single glazing with double glazing

PIM2030; PIM2025

In other cases, the distinction can be less clear. Where the expense enhances, expands or improves an asset, it is a ‘sum employed as capital’ in the business and the expense is disallowed.

It is also possible that the repair costs are not incurred ‘wholly or exclusively’ for the purposes of the trade, in which case they would not be allowable.

This guidance note considers the application of these general principles and other specific provisions in relation to repairs