Originally Posted by
md 600 driver
The question should be is the Robinson rebuild 100% allowable in year 1 as normal maintenance under Uk tax law or is it a long term capital cost with draw down over a number of years
Very much winging this one: theoretically not able to write off a cost if that cost has not yet been realised. There is an argument that it could be accrued over the 12 year period.
Typically, a Robinson would be depreciated over 12 years, down from purchase price to estimated timed-out residual value. Depreciation is not tax deductible under normal circumstances.
The rebuild would incur a significant cost, which would be allowable on the P&L - however, the value residing in the balance sheet for the depreciated machine would increase, probably beyond the value of the rebuild. Detailed guidance from an Accountant required!