Allowable expenses ?

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    Allowable expenses ?

    I recently bought a BTL. It had oil fired central heating that did not function and was irreparable. I replaced this with a new gas heating system. Can the cost of installing the gas system be deducted as an allowance expense against my income. Thank you for your time on this.

    #2
    There are two different answers to this.

    Normally replacing one heating system with another would be an allowable expense against income because it's a repair.

    If the purchase price of the property was lower because of the condition of the property, including the defective heating, it's a capital item, because the value of the property was affected by it.

    It could be a combination of the two.
    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).

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      #3
      Thank you. No there was no reduction in asking price because of the heating issue. This was identified by an engineer before my clients moved in and was confirmed by them when they did move in. I acted quickly to rectify the problem.

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        #4
        In which case, I'd say it was a maintenance issue.
        Other people would be more cautious and suggest it was capital or, at least, partly capital.

        But I know where I'd be putting the figures personally.
        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

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