by Asim Abbas
11 November 2026 
Repairs or improvements? What landlords can claim against rent
Repairs or improvements? What landlords can claim against rent
Repairs to a rental property are deductible from rental income. Improvements aren’t, although they can reduce Capital Gains Tax when you sell.
- Repairs restore an asset and are deductible
- Improvements enhance it and are capital
- Like-for-like with modern materials is still a repair
- Work before first letting may be capital
The line between the two is one of the most common areas of dispute between landlords and HMRC.
This guide explains how to tell the difference, with practical examples.
The basic test
A repair restores something to its previous condition. An improvement makes it better than it was, adds something new or changes its character. Replacing an entire asset, such as the whole building, is capital.
| Work | Usually |
|---|---|
| Replacing broken roof tiles | Repair |
| Replacing single glazing with double glazing | Repair, as modern equivalent |
| Replacing a kitchen with a similar standard one | Repair |
| Building an extension | Improvement |
| Loft conversion | Improvement |
| Upgrading a basic kitchen to luxury | Partly improvement |
| Redecorating between tenants | Repair |
| Adding an en-suite where none existed | Improvement |
Rental income tax calculator
See tax after repairs.
Modern equivalents
Using modern materials doesn’t make work an improvement if it’s the nearest current equivalent, such as UPVC windows replacing old wooden ones, or a combi boiler replacing an old system.
Martin replaces a 20-year-old kitchen in his rental house for £9,000. A like-for-like kitchen would cost £7,500, but he adds an island and premium appliances. He claims £7,500 as a repair, and the extra £1,500 is capital, added to the property’s cost for CGT.
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If you buy a property in poor condition and the price reflected that, or it wasn’t fit to let, work to make it lettable is usually capital. If it was usable and just needed normal wear and tear fixing, repairs can be deductible.
Improvements and CGT
Capital improvements are added to the base cost when you sell, reducing your gain. Keep invoices for the life of the property.
Property companies
The same distinction applies to companies, with repairs deductible for Corporation Tax.
Other deductible costs
- Letting agent and management fees
- Insurance, ground rent and service charges
- Safety certificates and inspections
- Replacement of domestic items
- Legal fees for short lets, not purchases
See HMRC’s guide to allowable rental expenses, our domestic items relief guide and our landlord tax returns service.
What should I do next?
Restore or improve?
Like-for-like part.
For CGT later.
Frequently Asked Questions
Can landlords claim for a new kitchen?
A like-for-like replacement is a repair. Upgrades are partly capital.
Is double glazing a repair?
Usually yes, as the modern equivalent of single glazing.
Can I claim renovation costs before letting?
Not if the property wasn’t fit to let when bought. That work is usually capital.
Are improvements ever deductible?
Not against rent, but they reduce CGT when you sell.
Is redecorating claimable?
Yes, redecorating is a repair.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
