Landlord Expense Query

Hello, I have two older properties rented, damp issues began appearing in both properties. I had a company out to survey the damp who recommended PIV units and an extractor fan in bathroom. This has since fixed the damp issue. The units were quite expensive and cost a total of around 3.5k for both properties. I’d like to know if this is deductible from my rental income or would it be capital? I’d previously lived in one of the houses and never had damp issues. Thanks

Hi,
Thank you for your question. A rental business cannot deduct the cost of capital expenditure when computing its profit or loss. As per PIM3010, if the unit is a fixed asset, you may not claim the expense incurred. In future, capital allowances may be offset against any capital gains should the property be disposed of.
PIM3010 - Capital allowances
Thanks