Conservatory replacement/improvement as Revenue or Capital?
Tax Planning and Financial

2 Thanks
3 Posts
7 years ago
Hi everyone,

I hope someone can help with a question about a conservatory we had to replace recently and how to account for it.

The rental property had an old wooden 'lean to' style conservatory on a concrete base with a plastic corrugated roof. It was starting to leak and get old so we recently replaced it with a modern upvc conservatory. The old one had no brick walls, just wooden panels. For the new one we chose to have brick walls built to roughly the height of the old panels (110cm). In order to keep the internal floor space the same, we had to extend the base slightly to allow for the width of the brick walls. It would have been cheaper to have not had brick walls and just gone for upvc panels, but we prefer brick and thought it would be better for the long term.

Does the fact that we had bricks instead of panels class as an 'improvement' therefore making it a capital expense? And if so, would it be the whole amount, or just the portion that was over and above the cost for panels? E.g. if it would have been £4,500 for a upvc panelled conservatory, but with bricks instead was £6,500, would we put £4,500 as revenue expense and £2,000 as capital expense?

Or, does the whole thing just class as revenue because it was a replacement of an existing conservatory and the internal floor space stayed the same?

It is only about 3m x 3m and is basically used as a utility room.

Thanks in advance for any help.


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