HMRC internal manual

Business Income Manual

Specific deductions: repairs and renewals: contents

This chapter contains general guidance on deductions for repairs in calculating the profits of a trade or property business.

The law that underlies this chapter is discussed separately at BIM35400 onwards. The guidance in this chapter includes links to the appropriate discussions of the underlying law.

There is an overview at BIM46901 which is intended to provide a guide to the issues to be considered.

This is an area where it is important to establish the facts. In particular it is crucial to determine what forms the asset or ‘entirety’ in question. Is it the item that has been worked on or is that only a part of a larger asset?

Care needs to be taken as people can use the same terms for different types of work. For example some people use ’renewal’ to mean simply repairing an asset that has become run down and others may mean that the asset has been replaced.

Guidance on special rules for lettings of furnished residential properties is at PIM3200 onwards.

Property businesses

Although the guidance in this chapter is written in terms of trades, it applies equally to property businesses.

This chapter contains the following: