Is it a repair or an improvement for landlord tax?

A repair puts back what was there, such as a broken boiler swapped for a similar one, and comes off your rent in 2026-27. An improvement adds or upgrades something, such as an extension, and is capital instead.

The rules below follow GOV.UK and HM Revenue and Customs' Property Income Manual (PIM) and Business Income Manual (BIM), checked on 17 October 2026, for individual landlords in England.

The test HMRC uses

GOV.UK says a repair "restores an asset to its original condition, sometimes by replacing parts of it." HMRC's manual (PIM2025) gives the contrast: replacing roof tiles blown off by a storm is a repair, but taking off the roof and building another storey is a capital improvement.

GOV.UK treats spending as capital when you:

• add something to the property that was not there before
• alter, improve or upgrade something that was already there
• buy furnishings and equipment for the property

PIM2030 calls it "largely a question of fact and degree". BIM46950, which PIM2025 points to, asks a useful question: is it the same object before and after the work?

Modern materials and double glazing

Newer materials do not turn a repair into an improvement. PIM2030 says replacing lead pipes with copper or plastic is usually still a repair, unless the new part does more, such as pipes designed to take greater pressure.

PIM2030 generally treats replacing single glazing with double glazing as a repair, as the window does broadly the same job. BIM46925 explains that double glazing was once an improvement but became the industry norm.

Where the change is a significant improvement, PIM2030 says the whole cost is capital, including redecorating afterwards.

Common jobs

Rewiring is the least clear. Fixing faults is a repair, but in its trading examples HMRC treats replacing a whole electrical system as capital under separate rules. In our reading, a full rewire is one to check before you claim it.

Repairs on a property you have just bought

PIM2030 says buying a property shortly before the work does not, by itself, make a repair capital. The cost may be capital where:

• the property was not fit to let until the work was done, or could not go on being let without it shortly after you bought it
• the price was substantially reduced because of its dilapidated state
• you agreed, as part of the deal, to put the property into good repair

Relief is not refused just because the price reflected normal wear and tear, such as being between exterior painting cycles.

BIM35450 traces this to two court cases. It contrasts Law Shipping (1923), a ship that had to be repaired before it could be used, so the cost was capital, with Odeon (1971), cinemas used for years before repair and bought at a price not reduced for their condition, so the cost was allowable.

When one bill covers both

Where a builder does an improvement and separate repairs at the same time, PIM2030 says the repairs stay allowable, split on a fair basis such as an itemised bill. You cannot claim what a simple repair would have cost when you improve instead: PIM2025 says that "notional repairs" concession ended in April 2001.

Improvements and Capital Gains Tax

GOV.UK says to keep records of capital spending, as it may count against Capital Gains Tax when you sell. You can deduct the costs of improvement works, such as an extension. Normal maintenance, such as decorating, does not count. HMRC's manual (CG15180) adds that the work must still be reflected in the state of the property when you sell. Our guide on Capital Gains Tax on a rental property covers the rest.

Furniture and appliances

Fitted items such as bathroom suites, radiators and kitchens count as repairs to the building when replaced like for like. Freestanding appliances, furniture and furnishings do not. GOV.UK says their replacement may instead qualify for replacement of domestic items relief.

A worked example

Priya lets a terraced house. In 2026-27 her jobs are:

Priya deducts £13,200 from her rent for 2026-27. The £28,700 of capital spending is not deductible now, but she keeps the invoices, as they may reduce her gain when she sells. This is an example only.

What this means for you

The invoice description matters: "replace failed boiler with equivalent" tells the story, "new heating" does not. In our reading, a photo of what was there before is the simplest proof a job was like for like. Keep improvement receipts safe for when you sell.

For the full list of running costs, see what expenses landlords can claim.

Steps to sort a job

1. Note and photograph what was there before the work starts.
2. Ask whether the result does the same job as before. If so, it is likely a repair.
3. Check whether anything new was added, or the item now does more. If so, it is likely an improvement.
4. Ask your builder to itemise repairs and improvements separately on the bill.
5. If you bought the property recently, check whether it could be let as it was and whether the price was cut for its condition.
6. Record repairs as expenses and keep capital costs separately for when you sell.

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