This is a form of sinking fund which is set aside each year to provide financial resources for items of repair or renewal which are likely to be undertaken at intervals of more than one year, e.g. external decoration or renewing parts of heating boilers. These allowances are needed to ensure that yearly accounts reflect the total cost of maintaining a property. If any item relates to an installation having a particularly long life, separate finance may not be required if a sinking fund has been set up and has matured for replacement of the entire building.
