Replacement of balconies on a rental property

[CharlieMac]

The management company told me that both balconies on my rental apartment will need to be replaced.

Will Revenue classify this as a repair due to wear and tear to keep the apartment letable so I could claim tax relief on rental income on the costs of the replacement?

Or would it be considered a building alteration that might be classified as an enhancement and so treated as a capital expense? If the later could I add the cost to the "purchase price" of the property and could then use the amount of that cost to reduce my CGT liability on the proceeds of a future sale?

 

[charlie007]

Surely the management company will be responsible for this.

 

[CharlieMac]

My letting agent was present at an inspection recently and was told that they will need to be replaced.
The management company haven't written to the owners yet to say what the plan is for how to pay for the works. I think most units in the block are affected.
Does this work normally come out of the sinking fund then? So ultimately perhaps the annual mgmt fee/service charges will be increased so owners pay for it all that way?
Or if there is not enough in the sinking fund then a levy is issued? In which case I would be back to the question of how to treat that cost on a tax return?

 

[charlie007]

Does this work normally come out of the sinking fund then?

Yes, but of course that assumes there being enough. I have no idea of the tax situation.
A decent thread re OMCs is here.......... https://www.askaboutmoney.com/threa...lopment-is-being-managed.231051/#post-1819796