Is new boiler allowable expense in this instance?

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    Is new boiler allowable expense in this instance?

    Thanks for the advice I received for my related question a few days ago....

    I had a 30+ year old boiler in my one bedroom flat which I let out. Each year the chap who services it warns me that it's on a reduced parts list and that I really need to get it replaced before it 'forces my hand'. The flat also has an immersion heater which had recently started rattling and driving the tenant mad. In addition I had just had to deal with the overflow leaking from the header tank in the loft. So I've bitten the bullet and had the old system replaced with a new combi boiler. This means the old boiler + immersion cylinder and header tanks were ripped out and the new combi boiler was installed, providing hot water and heating.

    My question is this considered an allowable expense i.e. is it effectively a repair/maintenance using the equivalent modern technology (like replacing standard old windows with modern double glazed ones)? Or would it be deemed an upgrade so not allowed?

    Apologies for the long winded explanation and sorry if the answer seems obvious- I'm fairly new to all this.


    Since it replaces an existing system over 30 years old, it should be treated as maintenance and cost can be claimed against rental income.


      Agree with Gordon... if it was replacing a modern non combi boiler you had put in 5 years ago then it would probably be part improvement rather than just maintenance... but I suspect in all reality HMRC would be too busy to check anyway


        Landlordzone posted the following useful article on Tax today see
        The “Grey” areas between Capital and Expenses


          Thanks very much all.


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