Replacement Boiler Tax Deductible?

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    Replacement Boiler Tax Deductible?

    Hi,

    As part of my CP12 gas safety inspection, I have been advised that the boiler vessel at my rental property will soon fail and that I should now consider replacing the boiler before it does. The combination boiler is about 15 years old.

    If I were to purchase a modern but like for like combination boiler to replace the soon to fail existing boiler, would this be tax deductible?

    Thanks in advance.

    Regards,
    Andrew

    #2
    Yes, it is allowable.
    Any replacement is likely to be an improvement, but replacing a boiler with another boiler is maintenance.
    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
      Thanks for that.

      Apologies if this is a daft question but if I were to purchase the replacement boiler now (i.e. tax year 2016/2017), can I deduct from the tax due to HMRC for tax year 2015/2016?

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        #4
        No. The expense occurs when the purchase is made by the business (unless it is for a periodic charge, like insurance, which should - in a perfect world - be amortised over the tax year).
        So if you buy the item now, it is allowable against tax due for the 2016/17 tax year.
        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


          #5
          That's what I suspected. Thanks for confirming.

          Comment


            #6
            You will not need to pay any tax on this. I have done this myself in the property I rent out. iv submitted my tax return and it was all fine.

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