Bespoke Tax Accountants

Specialist tax advice, accountancy and tax returns

01242 505970
info@bespoketax.com

  • Home
  • About Us
    • Meet The Team
    • Careers
    • Statutory Information
    • Privacy Policy
  • Who We Help
    • Personal and Family
    • Business
    • Our Clients
  • News
    • Making Tax Digital
  • Giving Back
  • Contact
  • Cloud Accounting
    • Xero

Capital expenditure for property businesses

11th April 2019 By bespoketax

Capital expenditure for property businesses

There are different rules which apply to different types of capital expenditure for a property business. One of the main areas to consider in deciding whether a repair is a deductible expense is whether it is revenue or capital. Capital expenditure cannot be deducted in computing the profits of a property business, however there are separate reliefs for some capital expenditure.


The cost of land and buildings is capital expenditure, this includes the cost of any new buildings erected after letting has started and any improvements. 


HMRC also list the following additional examples of capital expenses:



  • expenditure which adds to or improves the land or property; for example, converting a disused barn to a holiday home,

  • the cost of refurbishing or repairing a property bought in a derelict or run-down state,

  • expenditure on demolishing a derelict factory to clear space for a new office building; the cost of the new building,

  • the cost of building a car park next to a property that is let,

  • expenditure on a new access road to a property,

  • the cost of a new piece of land next to a property that is let.

In general repairs and trivial capital improvements (incidental to a repair) are usually categorised as revenue expenditure. However, the devil can be in the detail and careful consideration must be given to specific expenses. For example, alterations due to advancements in technology are generally treated as an allowable repair rather than an improvement such as replacing single glazing on windows with double glazing.

Filed Under: Uncategorised

Recent News

  • Spring Budget 2021 – VAT
  • Spring Budget 2021 – Capital allowances
  • Spring Budget 2021 – Government backed loan schemes
  • Spring Budget 2021 – CJRS and SEISS schemes extended

News Categories

  • Budget Summary
  • Business
  • Capital allowances
  • Capital Gains Tax
  • Construction Industry Scheme
  • Corporate Governance & Regulation
  • Corporation Tax
  • Duties
  • Employee Benefits
  • Employment & Payroll
  • Employment Law
  • Family Tax Credits
  • General
  • HMRC notices
  • Income Tax
  • Inheritance Tax
  • National Insurance
  • NIC & Pensions
  • Overseas personal tax issues
  • Overseas tax issues
  • Payroll
  • Pension
  • Personal
  • Practice News
  • Stamp Duty Land Tax
  • Tax credits
  • Tax Diary
  • Value Added Tax

About Us

Bespoke has a reputation for helping our clients make the most of their financial situations and in turn we have become a trusted extension of their business or family.

Bespoke assist with compliance requirements, providing specialist tax advice, and planning for now and the future.

Keep informed.
Sign up for our Topical Newsletter

Our FREE monthly newsletter will keep you up to date with the latest news related to the world of accountancy.

Register Here

Contact

Delta Place,
27 Bath Road, Cheltenham,
Gloucestershire, GL53 7TH
01242 505970
info@bespoketax.com

ICAEW Chartered AccountantsXERO Gold PartnerChartered Institute of TaxationMember of EISA

Copyright © 2021 · Bespoke Tax Accountants · Website by Culpepper & Co

.
This site uses cookies: Find out more.