Last updated: 14 October 2026
How much tax relief can you get for replacing an asbestos roof?
If you replace an asbestos roof with a modern equivalent, such as profiled steel sheeting, it is usually treated as a repair because you’re restoring the building to its original function, using the nearest modern material. The full cost, including safe asbestos removal and disposal, is then deductible against profits in the year you spend it. If the work improves the building, for example by adding a mezzanine, extra height or a much larger roof, the improvement element is capital. Capital building works can only get the 3% Structures and Buildings Allowance, not the Annual Investment Allowance.
Repair or improvement?
| Work | Treatment |
| Replacing asbestos roof sheets with steel sheets of similar function | Repair, fully deductible |
| Removing and disposing of asbestos | Deductible as part of the repair |
| Adding roof insulation required by building regulations | Generally accepted as part of the repair |
| Adding solar panels during re-roofing | Plant: capital allowances |
| Raising the roof height or enlarging the building | Capital: Structures and Buildings Allowance |
| Replacing a roof on a building just bought in poor condition | May be capital if the price reflected the condition |
HMRC’s view
HMRC accepts that replacing a significant part of a building with modern materials is still a repair if the building as a whole is the “entirety” and its function isn’t changed. Improving insulation as a result of current regulations doesn’t make it an improvement. The roof is part of the building, not the entire asset, so replacing it doesn’t count as replacing the whole.
Example
Owen’s company owns a warehouse. In 2026, it replaces the asbestos cement roof with insulated steel cladding for £85,000, including £18,000 for licensed asbestos removal. The building’s use and size stay the same. The full £85,000 is a repair and deductible in the company’s accounts, saving £21,250 in corporation tax at 25%. Solar panels added at the same time for £15,000 qualify for the 100% Annual Investment Allowance as plant.
If the work is capital
- Structures and Buildings Allowance gives 3% a year over 33⅓ years on qualifying construction costs
- Integral features, such as new electrical systems, can qualify for the 18% special rate pool or AIA
- Capital costs not qualifying for allowances are added to the property’s base cost for CGT
Landlords
Landlords of commercial property can deduct the same repairs against rental income. For residential landlords, repairs are deductible but capital improvements aren’t relieved until the property is sold.
Common mistakes
- Capitalising a repair and losing relief over 33 years
- Claiming a repair for an extension or larger roof
- Missing the solar panel element for AIA
- Not keeping a surveyor’s description of the work
Records to keep
Keep the contractor’s quote and invoice describing the work, an asbestos survey and before-and-after photographs.
Frequently asked questions
Are asbestos surveys deductible?
Yes, as a business expense.
Does the type of business matter?
No, the rules apply to all traders.
Can I spread the repair cost?
Accounting may spread it, but tax follows the accounts.
Is there a grant for asbestos removal?
Not generally in the UK.
Related: which assets qualify for capital allowances, capital or revenue repairs for tenants and mortgage interest for business.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with capital allowances and repairs. See our small business accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
