wow, very surprised at that advice. I would have thought that a boiler replacement is a capital item not a repair. A repair maintains, a capital item extends.
Do you have that advice in writing to protect yourself?
Thanks Bronte, can find discussions where people argue both sides online, would be hoping that your thinking is correct. Maybe I should ring revenue and seek clarification from them?
The general rule is that if it's merely a replacement, it's an expense, and if it's an improvement, it's capital.
A previous AAM threat on a very similar question: http://www.askaboutmoney.com/threads/new-windows-repair-or-capital-expenses.162861/
If you feel that there are good grounds for claiming something as an annual running expence-rather than capital expenditure, then do so claim.
Having that advice in writing would give no proaction whatsoever from having to pay the tax if the advice turned out to be unacceptable from Revenue. It might give you a claim against your accountant, but probably not.
At the end of the discussion it is what the taxpayer "feels"
My view is that you would claim wear and tear allowances on the new boiler over 8 years.
Most taxpayers would probably feel like paying reduced, better again, no or virtually no tax. But that's why tax law is there, there is literature, guidance notes, precedent, experience, etc. Its not down to how a taxpayer feels. Come on, that's a ridiculous comment/view in all fairness.
But it's obviously not furniture and it's hardly a fitting that can be easily removed from the premises.
So it wouldn't be eligible for capital allowances?
Hi,
We own and rent out a house. We got the gas boiler serviced at the weekend, and the guy doing the service advised that some part is likely to fail soon, and probably wouldn't be worth replacing. (Boiler is about 18 years old) I was wondering if it possible to deduct the cost of a replacement boiler from tax due?
I think it is a bit of a grey area. As it it could be seen as a capital investment, but at the same time I won't be replacing with an improved system, zoned heating etc, I will be just replacing the existing (nearly kaputt) gas boiler with a new working version?
Thanks.
You would, however, have to be in a position to prove that it was a like-for-like replacement.
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