Repair or improvement

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    Repair or improvement

    Apologies if this has been asked before! Newby!

    I have a rental property which uses old fashioned electric underfloor heating, originally installed 1970s.

    This system has recently packed up, so I will have to spent circa £4k to install a new gas central heating system with combi boiler and radiators.

    My question is; is this technically a repair (because the underfloor heating has packed up and I need to provide a heating system) or an improvement (because it is an improvement over old). From a tax perspective this makes a difference to whether I can claim it.

    Of course, if the underfloor hadn't packed up I wouldn't be having to do this, although the new system will be significantly more efficient for my tennants, which is great and does as a consequence represent an improvement. But does the tax man let be have any relief?

    Thanks if any can offer advice.

    #2
    There is a lot to be said for underfloor heating. Is there no way you could repair it?

    If it's just the controller that is duff, and the elements are okay, (as it sounds) you can get a modern controller. I just had this one installed:

    http://www.pactrolsolutions.com/4039...ensor-54-p.asp

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      #3
      Hi thanks for your reply. I'm not entirely sure but wouldn't be surprised if the element has gone.

      It is/was however extremely expensive to run, so I'm wondering if I can use this as a case to declare as a repair and end up GCH, as this would be better in the long run. The underfloor takes my EPC score down quite a bit, despite all other insulation measures!

      A new GCH install is going to be expensive,but it will keep the tenant happy (good tenant) with lower bills. Just thinking I could claim as a repair, but as a consequence it's also an upgrade...?

      I'm sure this kind of thing must have been encountered before.?


      Thanks.

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        #4
        See here: http://www.hmrc.gov.uk/manuals/pimmanual/pim2020.htm

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          #5
          How much would the repair to underfloor heating cost ? If it meant breaking up the floor and tiles to relay a new section of element and to refill the floor and lay new floor tiles , and you were quoted 3K for such repairs.

          Then you could apportion 3K as revenue expense and 1K as capital expense

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            #6
            Thanks for your replies, all.

            I'm reluctant to spent money repairing old stuff, which is quite power hungry. My tenants electric bills are high as a consequence (hot water is by immersion heater only on economy 7), so it would be nice to sort this out for them.

            It would seem daft to even consider digging up everything when it is much simpler and more energy efficient to install a modern gch system.

            Underfloor has its benefits, but it comes at a cost and the bungalow is never very warm in the winter.

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