Buy To Let Repairs Tax Relief is available to Landlords provided that the Property under Repair is Habitable and that the Repair Work does not involve any Improvement Work.

If the Property is Habitable, Buy To Let Repairs Tax Relief applies, and you can deduct the Total Cost of Repair from the Rental Income before Tax.

If the Repair Work includes any element of Improvement the Total Cost is a Capital Cost, No Apportionment, to be set off against any Capital Gain on the Sale of the Property.

If the Property is Uninhabitable, the Total Repair Costs are Capital Costs and can be set off against any Capital Gain on the Sale of the Property.

To be clear, a Property listed as Derelict is neither Habitable or Mortgageable and all Costs associated with making the Property Habitable, are Capital Costs deducted from the Sale Proceeds for Tax Purposes provided that the Renovation is not your Day-job. If Renovating Properties is your Day Job, any Profits are straightforward Income and taxed as such.