Replacement Boiler Tax Deductible?

[whitwa]

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

[jpkeates]

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

[whitwa]

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?

[jpkeates]

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.

[whitwa]

That's what I suspected. Thanks for confirming.

[publication1]

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.