From: Ronald Raygun 
Subject: Re: Can excess mortgage payments be offset against tax?
Newsgroups: uk.finance
Date: Fri, 24 Mar 2006 10:36:12 GMT

Rupert wrote:

> "Ronald Raygun"  wrote
>> john boyle wrote:
>>>
>>> NO, they need to be essential repairs or maintenance. If you are
>>> 'improving' then that is capital too.
>>
>> What do you mean "essential"?
>>
> It's a point that is argued at length by Accountants and the Revenue.
> 
> Roof is leaking:- Replace a few slates--Essential Repair =Allowable
> Roof is leaking:-Replace whole roof--Not essential=Capital Exp.

I appreciate the difference, but see no need for the word "essential"
here.  What makes a repair a repair is not how urgent or how necessary
it is, but whether the object of the repair was in fact broken prior
to it.  Hence replacing the whole roof when only 10% of it is broken
would, without any reference to essence, be 10% repair and 90%
capital improvement.

But it could be 100% repair under certain circumstances, such as if an
inspection reveals that although only 10% is leaking *now*, the rest of
it is on its last legs too and will need replacing soon anyway, and it'll
be more efficient to get the whole lot done now than doing 10 piecemeal
repairs spread over the next few years.

> Divan bed has collapsed--Replace with new--Allowable
> Divan bed has collapsed-Replace with Antique Louise XV Bed--Improvement

What?  That old thing?  Call that an improvement?  :-)  Sure, agreed.

> Outside Paint flaking-Repaint --Allowable on the assumption that the last
> paint job was many years ago.

No, always allowable.  Flaking paint is objectively "broken" no matter
how recently it was applied (could have been a botched job, and if you
can't sue the idiot who did it (oh, DIY was it?) then the cost of doing
it again properly must be allowable).  If it's only flaking on one wall,
fair enough, repaint only that wall.

> Broken single glazed window--Replace glass-Allowable
> Broken single glazed window--Replace with double glazing---Improvement

Sure, subject to the assumption that DG is more expensive, which it
might well not be (if replacing the whole window, frames and all, as
opposed to just a pane).  But if there is an element of improvement,
you would only disallow the cost excess, and still allow that part of
the cost which corresponds to what a like for like repair would have
cost.