CGT - Enhancement Expenditure v Repairs - Where do Revenue draw the line?

Sarenco

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Could anybody point me to any guidelines on where Revenue draw the line between (deductible) "enhancement expenditure" and (non-deductible) "maintenance or repairs" for CGT purposes?

Would the following seem right in principle?

Enhancement
Upgrading kitchen, including all tiling and appliances.
Upgrading bathroom, including tiling.
Upgrading carpets.
Upgrading heating system.
Upgrading electrical wiring/fixtures.

Repairs/Maintenance
Repainting interiors.
Sanding and varnishing wooden floors.

Many thanks in advance.
 
Upgrading (presumably that's replacing) carpets might be borderline Enhancement, but the rest would seem good.

There is also the question of Capital Allowances where you are allowed to charge some expenses over a 8 year period eg new cooker rather than deduct the expense in year 1. In this case the expense could not be used to reduce CGT - it's either income or capital expense but not both
 
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Thanks @jpd

I guess I'm trying to establish where, in practice, Revenue draws the line between a repair, a replacement and an enhancement.
 
Could anybody point me to any guidelines on where Revenue draw the line between (deductible) "enhancement expenditure" and (non-deductible) "maintenance or repairs" for CGT purposes?

Would the following seem right in principle?

.

Enhancement
Upgrading kitchen, including all tiling and appliances. Wear and Tear
Upgrading bathroom, including tiling. Repair
Upgrading carpets. Replacement
Upgrading heating system. Repair
Upgrading electrical wiring/fixtures. If required than it's repair

Repairs/Maintenance
Repainting interiors.
Sanding and varnishing wooden floors.

Many thanks in advance.[/QUOTE]

Now I note you did mention CGT. If you haven't as a landlord written off the above costs, you could argue that say putting in a large sum on new kitchen/bathroom/tiling/electircs/plumbing and windows was enhancement.

To me enhancement is something like a new room that adds more value to the capital nature of the building, so like a converted garage into a bedroom, converted attic into bathroom, adding a conservatory. Windows too in that scenario.
 
@Bronte

As it happens, this query does not relate to a rental property - it relates to a second home (not a PPR).

There seems to be wildly differing views as to what constitutes an “enhancement” but I would be particularly interested to know Revenue’s position.
 
@Bronte

As it happens, this query does not relate to a rental property - it relates to a second home (not a PPR).

There seems to be wildly differing views as to what constitutes an “enhancement” but I would be particularly interested to know Revenue’s position.

You're being very vague. If you tell me someone spent 50K two years ago to do the whole lot of that than I'd agree everything comes under enhancement.

But if it's a case of painting one year, fixing the boiler another, retiling the bathroom another than I don't think that's enhancement.

Can you be less vague. It's a very odd area in my experience. And you'd have to have full facts to make a reasoned guess as to how you'd argue this with revenue.
 
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