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Posted Sat, 22 Jun 2024 10:05:42 GMT by E
Due to wet and crumbling plaster in the kitchen we have had to remove old plaster, repair the walls and replace the kitchen. Can this count as a revenue expense? If so, the cost of this will exceed the income from the property. When I enter the expense in the "property repairs and maintenance" box I get an error message asking me to check and amend the entry. Please advise how to proceed. Thank you
Posted Thu, 27 Jun 2024 08:13:31 GMT by HMRC Admin 25 Response
Hi E,
The repair to the plaster will count as a revenue expense.
Provided the kitchen is replaced with a similar standard kitchen and does the same job as before, then this is a repair, and the expenditure is allowable.
If the kitchen is substantially improved, for example if standard units are replaced by expensive, high quality materials or the layout is significantly changed, then the expenditure would be capital.
Further information can be found here:
Work out your rental income when you let property
PIM2030 - Deductions: repairs: is it capital? 
When entering an amount into the ‘property, repairs and maintenance’ box which exceeds the ‘Total rent and other income’ box, an advisory message will display in red- ‘WARNING:
This figure is high in relation to 'Total rents and other income from property'.
If you are happy with the figures given, you can scroll to the bottom of the page and click ‘save and continue’, you can still progress through the tax return and any losses will be recorded under the ‘Profits and losses for other property income’ page.  
Thank you. 

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