BIM46900 - 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:

BIM46901 Overview
BIM46905 Role of accountancy
BIM46910 What is a repair: the ‘entirety’
BIM46911 What is a repair: the ‘entirety’: examples
BIM46915 What is a repair: improvements
BIM46920 What is a repair: different materials
BIM46925 What is a repair: changing technology
BIM46930 What is a repair: notional repairs
BIM46935 What is a repair: effect of a change of ownership
BIM46940 What is a repair: required by a lease
BIM46945 Assets on which capital allowances given
BIM46950 The character of the asset
BIM46960 Statutory renewals allowance
BIM46965 Change from plant & machinery allowances to statutory renewals basis
BIM46970 Valuation basis
BIM46975 Change to valuation basis
BIM46980 Non-statutory renewals allowance
BIM46985 Change from non-statutory renewals allowance to capital allowances
BIM46990 Maintenance of a technical library