Allowances against CGT

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    Allowances against CGT

    When we sell our rental property I know we can deduct buying/selling costs and improvements when calculating CGT.
    Does a new boiler count as an improvement or maintenance if it is a better boiler than the previous one and the previous one was still in working order?
    Thanks

    #2
    A better boiler ( e.g larger size ) should be treated as improvement.

    Comment


      #3
      If it's just better because it's newer, that's not really an improvement.
      If it's a replacement but also bigger, some of the cost is an improvement but not all of it.

      A lot depends how you want to treat it, it's not as black and white as it looks.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        a new boiler could fall under either really.

        if it's an old boiler then it's likely that the modern day equivilennt will be an improvement, by default and you can't buy the old boiler type anymore. just like a filament and LED light bulb.

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          #5
          yes exactly how i see it - had a new boiler fitted to mine cos the old one broke down as we could not get the same one or type so had to improve the whole system so it was an improvement as well as a replacement

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            #6
            I remember under the last Labour Government, there was a policy for early replacing gas boilers still in good working order by "condensing" type gas boilers. So just count it as an "improvement" arising from previous government policy when you calculate the cgt.

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              #7
              But just to clarify you cant claim the same expense twice, only either or

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