Taxation on tools

For landlords who are self repairers, what is the tax position on small tools? Are they capital or revenue? Given that some small cheapish tools (eg paint brushes, budget saws) would be used up on a single job, I would imagine these could be claimed as part of the repair. What about bigger items (costing in the £10.00 -£50) They should be tax deductable somewhere in that they are used 'wholly and exclusively' but not clear where? Please could you advise?

Hi Mauree n Treadwell,
As per PIM3010, capital allowances may be claimed on the purchase of small tools providing they are used wholly and exclusively for the rental business as revenue expenditure within box 29 “other allowable property expenses”. PIM3010 - Capital allowances.
Thank you.

 

Thank you for the response but, my apologies, I am still slightly confused. You say that capital allowancescan be claimed but then say it can be claimed as revenue expenditure within box 29. Am I therefore correct in thinking that tools used in a rental business who meet the 'wholly and exclusively' rule are revenue? Thank you,

Hi,

In most cases tools kept at a property are not allowable expenses. In some cases allowances can be given for plant and machinery per PIM3010 but they must meet the general approach to identifying plant and machinery.

CA21010 - Plant and Machinery Allowances (PMA): meaning of plant and machinery: general approach to claims

Thank you.