As a landlord, I am replacing the garden shed (which has now rotted) with one of the same. Can I claim tax relief for this?
Arthur Weller replies:
Please look at HMRC’s Business Income manual at BIM35435, BIM35440, BIM35460 and subsequent pages on BIM35400. It seems to me that the whole shed is being replaced in its entirety and, therefore, this is capital expenditure and not revenue expenditure. Note there, the case of 'if an entire derelict wing of a large house were demolished and rebuilt.' However, I appreciate that this is not so clear cut and somewhat borderline.