Is this roof replacement deductible?

Hi there, We have just sold a rental property. When we bought it the roof was leaking and needed to be replaced and because of this we negotiated a reduction in the purchase price. It is arguable, therefore, that the roof replacement increased the value of the property. Are we able to deduct the cost of the replacement for CGT purposes? Thanks, Peter

Hi Peter Montgomery,
A roof repair is normally regarded as a revenue expense that can be deducted in computing property business profits.
Please refer to PIM2025 for more information on the distinction between 'restoration of an asset' (the cost of which can be deducted from rental income) and significant improvement of an asset beyond its original condition (the cost of which can be regarded as capital expenditure, deductible from a capital gain).  
PIM2025 - Deductions: repairs: overview
Thank you. 

The section HMRC refers to is unclear. It seems to imply that a full replacement of the roof, as opposed to the repair and replacement of a number of individual tiles, is an improvement and therefore an allowable expense. Is this correct, HMRC?

Hi,

You can find guidance here:

PIM2025 - Deductions: repairs: overview
BIM46901 - Specific deductions: repairs and renewals: overview

Thank you.