Section 20 works and allowable expense

Hi, I have received a Section 20 notice covering a planned large scale of works for repairs and replacements. The majority of the cost is to replace communal fixtures and fittings to meet fire, safety and security requirements, replacing the roof due to disrepair and so forth. When costs are finalised what is the position re allowable costs against property income please? The works are not of an improvement nature to add capital value to the property. The costs will be greater than the annual value of rental income fore reference also. Thanks

Hi,
 

Thank you for your question. Repairs and maintenance to reinstate a worn or dilapidated asset are usually deductible as revenue expenditure. I have attached some guidance which you should consider. You mention no improvements have taken place which you correctly state are indeed capital in nature and would not be allowable against rental income. Revenue expenditure is allowable against rental income. Any losses can be recorded and carried forward to use against future rental profits. Thank you : Property Income Manual     and : Property Income Manual  . Thank you .