New boiler needed - what can I claim?

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    New boiler needed - what can I claim?

    I have to put a new boiler into a house. What costs can I claim back?
    Thanks

    #2
    If it's a new house to you then it's capital improvement and can't be claimed against income tax. Keep the receipts for use when you sell and to reduce any capital gains tax.....if there is any!

    If it's replacement of a boiler in a house that is already a btl then you can claim all of the replacement costs against your rental income.

    If it's the house you live in you can't claim anything.

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      #3
      Originally posted by Tipper View Post
      If it's a new house to you then it's capital improvement and can't be claimed against income tax. Keep the receipts for use when you sell and to reduce any capital gains tax.....if there is any!

      If it's replacement of a boiler in a house that is already a btl then you can claim all of the replacement costs against your rental income.

      If it's the house you live in you can't claim anything.
      Thank you. It's already a btl. Does this claim include costs for tradesmen or it is just the cost of the physical boiler?

      Comment


        #4
        The entire bill and the new safety certificate and any associated re-decoration and making good. Regards Peter

        Comment


          #5
          Taxation treatment of new boiler

          The Government have announced fairly recently a concession whereby "qualifying expenditure" on improving energy efficiency in let dwellings can be written off against rental profit income. This is not so far as I recall going to be an open ended concession. There is a limit of £1500 per letting. Certainly insulation qualifies; quite possibly if you are replacing an old boiler with an ultra efficient condensing boiler this will qualify too. I will try to find a link to the official HMRC release on this concession and post it here

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            #6
            Out of curiosity, what if you replace a very old innefficient boiler 'just' prior to letting as you know that you will get complaints if you let with that boiler and have to replace it and do work which would disrupt tennants...

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              #7
              timing of energy efficiency work

              I think that it would be perfectly acceptable to change the boiler between or just before a letting so long as in that tax year you were showing rental income from that property

              Comment


                #8
                Originally posted by James Holmes View Post
                Out of curiosity, what if you replace a very old innefficient boiler 'just' prior to letting as you know that you will get complaints if you let with that boiler and have to replace it and do work which would disrupt tennants...
                If it is a property you have not rented out, then it is capital and no deduction is permitted.

                If it is an ongoing rental property then a revenue deduction is granted.

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                  #9
                  Sorry to hijack a thread but i am new to this....my property has been let out for about 2 months and the shower walls needs replacing (leak discovered which has been leaking for a while but has now become apparent on the bedroom wall). Is this reclaimable against tax in addition to the 10% wear and tear allowance??
                  Thanks.

                  Comment


                    #10
                    No. It is a pre-existing problem and therefore capital.

                    You can obtain a deduction against CGT when you eventually sell the property.

                    Comment


                      #11
                      Typical!! Ok thanks for letting me know, most helpful.

                      Ben

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