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:

  1. BIM46901
    Overview
  2. BIM46905
    Role of accountancy
  3. BIM46910
    What is a repair: the ‘entirety’
  4. BIM46911
    What is a repair: the ‘entirety’: examples
  5. BIM46915
    What is a repair: improvements
  6. BIM46920
    What is a repair: different materials
  7. BIM46925
    What is a repair: changing technology
  8. BIM46930
    What is a repair: notional repairs
  9. BIM46935
    What is a repair: effect of a change of ownership
  10. BIM46940
    What is a repair: required by a lease
  11. BIM46945
    Assets on which capital allowances given
  12. BIM46950
    The character of the asset
  13. BIM46960
    Statutory renewals allowance
  14. BIM46965
    Change from plant & machinery allowances to statutory renewals basis
  15. BIM46970
    Valuation basis
  16. BIM46975
    Change to valuation basis
  17. BIM46980
    Non-statutory renewals allowance
  18. BIM46985
    Change from non-statutory renewals allowance to capital allowances
  19. BIM46990
    Maintenance of a technical library