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HMRC internal manual

Business Income Manual

Specific deductions: dilapidations under a lease: meaning of dilapidations

Dilapidations are works of repair or re-instatement for which a lessee is liable if the lease provides that:

  • the lessee is responsible both for repairs, and
  • for delivering up the leased property at the end of the lease in the state in which it was at the beginning of the lease.

The following instructions are applicable only to dilapidations of property used for trade purposes; as regards payments under mining leases in respect of surface damage, see BIM62025.