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Posted Fri, 12 Jan 2024 16:26:43 GMT by
Dear Sir/Madam, I had a lodger under the Rent-a-Room Scheme until January 2022. I lived in the house until summer 2022 when I moved out to allow preparatory work ahead of renting out the property. This included using block paving to repair the worn-out tarmac driveway and the concrete rear patio. The patio remained the same size while the driveway slightly increased in size. I would like to confirm if these works are a revenue or capital expense, and if so, whether the expense is deductible from the rental income earned in the 22/3 tax year. I have read BIM46900 onwards, noting in particular BIM46911. Thank you for your time.
Posted Tue, 16 Jan 2024 11:03:39 GMT by HMRC Admin 8
Hi,
We would refer you to our Property Income Manual:
PIM2025 
PIM3010 
and  Business Income Manual BIM46915 this covers what is a repair and capital expenditure.  
If the work done has restored your property to what it should’ve been then that is a repair and would usually be an allowable deduction.  
If you alter or improve it then it is not a repair and the expenditure is capital.
Please see PIM2505  for expenses incurred before rental business begins.
Thankyou.

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