Water damage

Hi, my rented out property had water damage earlier. Insurance claim money was received in this tax year. If repair work is finished in this tax year but due to late submission of invoices by tradesman that the payment of repair is delayed to next tax year, can I still setoff the insurance claim money to the repair cost in this tax year?

Hi,
The expenditure incurred during the year of deduction is set against the profit for that year, even if an invoice was submitted later, this is cash basis. However, as the insurance company has paid in full, covering the property damage, you cannot claim for the repairs in your accounts. This makes no difference whether the tradesman completed the work within the year the property was damaged. 
Thank you.