GPEL Posted May 16, 2007 Report Share Posted May 16, 2007 Is the cost of replacing a faulty boiler an allowable tax expense in a rented property? Tax isn't my strongpoint. The thing is old, faulty and beyond repair. It wouldn't be an improvement, just straight forward replacement due to the original being faulty & beyond economical repair. Link to comment Share on other sites More sharing options...
plym77 Posted May 16, 2007 Report Share Posted May 16, 2007 In short.... yes! All you are doing is replacing a boiler with a modern equivalent as the old one is beyond repair, so yes, claim the expense! Regards Sherena Link to comment Share on other sites More sharing options...
GPEL Posted May 16, 2007 Author Report Share Posted May 16, 2007 Thanks Sherena, hoped that would be the case. To slightly complicate matters, the boiler heats both a commercial shop which I own & operate & the first floor flat which is rented. Does this change things? Link to comment Share on other sites More sharing options...
plym77 Posted May 19, 2007 Report Share Posted May 19, 2007 You should strictly apportion the cost between the two. Do remember that any expenses going through your trade saves you both tax and class 4 national insurance on the profits - saving an additional 8% (or 1% if profits over approximately £40k). Rental profits are only charged to tax, no NI. Regards Sherena Link to comment Share on other sites More sharing options...
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