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Posted Fri, 09 Dec 2022 11:43:11 GMT by Paulson
Hi, My friend sold a property recently. It was a flat in a building of 6 flats. Most of the properties in the building were owned by the local council. Before the sale the council changed the roof of the entire building and sent my friend a bill for his share of around £5K. He could not afford it as he had to sell the property on a loss, so he negotiated with the council to pay each month £100 each. He is paying it on a monthly basis. How does he declare this cost in the Self-Assessment, is it the £100 as a monthly maintenance cost? Thanks
Posted Mon, 12 Dec 2022 15:27:14 GMT by HMRC Admin 10
The costs of a replacement roof on a rental property, is considered a revenue expense and would be set against any income from renting out the property, in the year the repairs were made.  
Deductions: provides guidance on repairs .
Posted Wed, 25 Jan 2023 14:21:22 GMT by Paulson
Hi, My fried is paying £100/month to the council towards the cost of replacing the roof. Property was sold in July, 2022 at loss. Can he claim the entire £5000 in the repairs section or is he allowed to claim only the amount he paid to the council in the tax year 2021-2022 as it is paid on a monthly basis? Thanks,
Posted Fri, 27 Jan 2023 14:10:21 GMT by HMRC Admin 20
Hi Paulson,

If this is in relation to rental for the 21/22 tax year (as the sale is in 22/23) he can only claim for what was actually paid out in the tax year.
Any future payments would then be classed as a loss if there is no further rental income.

Thank you.

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