Hi All
I have read through the gov website and everything tells me that I can not claim the cost of a replacement boiler as a “Revenue Expense”
However I can not understand why a replacement condensing boiler which replaces an older, inefficient, constant problem giving condensing boiler is not deemed a repair or replacement and not an “improvement”
Anyone had this tested
I put mine down as an expense
I found this out from accountant A replacement boiler is tax deductible if you put a whole new heating system in its capital unless that system was a direct replacement for old one and go’s in the same rooms as old one.
If you put a new kitchen replacement and bathroom and it’s about the same size no extra fitments
than before it’s allowed on expenses but if you put in extra cupboards and expand the area it’s capital.
Take a picture before and after to prove the same number of items in room.
1 Like
If you were fitting a new boiler when there wasnt one already, it would be capital, but you can claim a replacement boiler as a repair.
If you improve something when you repair or replace it (eg replacing a 2 seater settee with a three seater) you can only claim the cost of the equivalent repair (ie the cost of a two seater).
But, if the improvement is just because the new item is a modern equivalent (eg replacing single glazing with double, or an old boiler with a new condensing one), then the cost can still be claimed in full as a repair.
You can claim it as an expense
As others have said, you can definitely claim a like for like replacement as an expense. I’d be interested to know where the gov website says otherwise. I attended an online HMRC briefing on allowable expenses and this exact question re boiler was asked. HMRC advised that like for like replacements may be claimed as expenses.