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  • Christina Jenner
  • Joined: 10/05/2019 05:57:21
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Replacing heating in rental property

10/05/2019 13:29:19
When I bought the house (my only rental property) it was heated by very old storage radiators. I have paid to be connected to the gas main and for a new boiler and radiators to be installed. The storage radiators were not fit for purpose but does installing the new heating and hot water system constitute improving the property? Can I claim against my tax?

Thanks.
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Re:Replacing heating in rental property

13/05/2019 07:02:54
Hi,

As you are improving the property by installing a new boiler and radiators this would be capital expenditure and as such cannot be deducted from your rental income.

You can find more guidance at: Property Income Manual 2030

You can claim these expenses as Capital expenses which may be deducted from any Capital Gain that arises when the property is sold.
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Replacing heating in rental property

13/06/2019 08:12:03
I have another example where I have recently replaced the old night storage heaters in my rental property with new storage heaters.

PIM2030 states " alterations due to advancements in technology are generally treated as an allowable repair rather than an improvement, if the functionality and character of the asset is broadly the same. For example, when single glazing is replaced with double glazing". Based on the above, my interpretation is that my expense for the new storage heaters can be treated as an allowable repair and is not capital.

Do you agree with my interpretation?

Thanks


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Re:Replacing heating in rental property

13/06/2019 13:53:35
Hi

Thank you for your question. I agree with your interpretation that replacing storage heaters is an allowable expense

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