When determining whether repairs are allowable deductions for tax purposes, there are a couple of considerations. The most important, by far, is whether repairs are capital or revenue in nature. CTA 2009, s 53; ITTOIA 2005, s 33
The other key reason for disallowing repair costs is when they are not incurred 'wholly or exclusively' for the purposes of the trade. CTA 2009, s 54; ITTOIA 2005, s 34
However, where the trader is using the simplified cash basis, the rules as discussed in the Simplified cash basis expenditure guidance note should be considered. Broadly, where expenditure would be eligible for plant and machinery allowances, the expenditure is treated as an allowable cash basis expense.