Repair or replace?

[MrWoof]

I have a house which is in need of some TLC. Currently it has wood framed, single glazed windows, the wood frames are mostly in a poor state of repair. The back door likewise needs replacing. All the windows have secondary glazing which has not been well fitted and is draughty.
The cost of replacing all this with double glazing is not a massive amount greater than repairing and would make the property more attractive to prospective tenants. Would I be able to claim the cost back in this tax year as a necessary repair or would it be classed as an improvement?

[Tax Accountant]

I have a house which is in need of some TLC. Currently it has wood framed, single glazed windows, the wood frames are mostly in a poor state of repair. The back door likewise needs replacing. All the windows have secondary glazing which has not been well fitted and is draughty.
The cost of replacing all this with double glazing is not a massive amount greater than repairing and would make the property more attractive to prospective tenants. Would I be able to claim the cost back in this tax year as a necessary repair or would it be classed as an improvement?

H M Revenue & Customs have specifically confirmed that this will be treated as a renewal and not as an improvement. Therefore, yes, you can claim the expense in your rental accounts in the year in which it is incurred.

Their main reasoning is that these days it may be cheaper to replace with double glazing rather than the like with like wooded equivalent.

Ramnik

[MrWoof]

Thank you for that, much appreciated.

[Tax Accountant]

Thank you for that, much appreciated.

You are welcome.

Ramnik