Rental Expenses

Hi everyone, I have a couple of questions regarding rental property expenses for tax purposes, and I'd appreciate some advice or clarification from those familiar with HMRC guidelines. Roof Repair Expense: I recently had to undertake a roof repair on my rental property due to leaks, which cost approximately £8000. I'm wondering if this expense qualifies as a deductible rental expense or if HMRC would classify it as a capital expense. Any insights on this matter would be very helpful. Handling VAT on Expenses: When reporting allowable expenses on my tax return, should I use the net or gross figures? Most of my maintenance bills from contractors include VAT in the final price. I assume I should input the total amount stated on the bill, including VAT, on my tax return. Could someone confirm if this is the correct approach? Thank you in advance for your help!

Hi,

Roof repairs are viewed as a repair to the house, rather than replacement of a separate asset, unless there is another aspect giving capital improvement, such as work carried out to create an attic room, an enhancement which will increase the value of the property.
 
If any of the costs (whether they are relievable against capital or income), are met by an insurance pay out, you can claim only the net amount not covered by the insurance.

Capital improvement costs that are disallowed for a property will usually receive relief against Capital Gains Tax when it comes to selling your property. 

Thank you.