We own a property which was let out to a tenant for about seven or eight years. When she moved into the property, it was immaculate but when she moved out, it was a wreck. We had to do a full refurbishment, including a new kitchen, new double glazing, flooring, new internal doors, new radiators and redecoration throughout. Am I able to claim this back on my tax return? 

Arthur Weller replies:  

A repair restores the property to its original position and so is classed as revenue expenditure, which can be offset against rental income. By contrast, an improvement adds something to the property that was not there before and is therefore generally classed as capital expenditure, which can only be offset against a capital gain when the property is eventually sold. So, if the new kitchen is essentially a like-for-like replacement, it can be treated as revenue expenditure. Decorating is usually revenue expenditure. HMRC accepts that replacing single glazing with double glazing is revenue expenditure, since double glazing has become the 'industry standard' nowadays. The like-for-like rule would similarly apply to the new flooring, doors and radiators. See HMRC’s Property Income Manual at PIM2025 and PIM2030.