Is a new boiler tax deductible?

C

Carmar

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Just another question about a rental property. We replaced the boiler in a newly acquired rental property as it was very old and not efficient. It was replaced after tenants moved in, so it was not a pre-letting expense. Would such a replacement be a capital allowance and so deductible over 8 years against rental income? I don't think that it was an improvement as it was not a combi-boiler, just the same type of boiler as before. Many thanks for any information.
 
In practice you can pretty much do what you like, I don't think I've ever seen a rental computation queried by Revenue. Even a few years ago when the interest was restricted to 75% I don't recall ever getting a single query from Revenue asking to prove that the interest had in fact been restricted correctly. Came across a few people just claiming the 100% interest as normal and getting away with it no problem too. Rental income doesn't seem to be a priority TBH
 
DB74 said:

the bottom of page 6 states "a ‘repair’ means the restoration of an asset by replacing subsidiary parts of the whole asset"
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1. That document is 8 years old and most likely is no longer in use.

2. That definition doesn't make a whole lot of sense. If a repair can be done without replacing a part, it suddenly doesn't stop being a repair.

Otherwise I'd have considered repairs and equivalent replacements to be pretty much synonymous.
 
A boiler for a rental property is generally considered a capital allowance rather than a repair.

This is because it represents a significant investment that adds long-term value to the property, rather than merely maintaining its current condition.

Capital allowances can be claimed at a rate of 12.5% annually over eight years for such items, as they are classified as having a long-term benefit to the property

In contrast, repairs typically involve costs incurred for routine maintenance and upkeep
 
I thought that until I had a query on basically this point from Revenue. My accountant said the Revenue has tools to review tax returns which flag up unusual ones. That it doesn't require a human review. I had expenses several items which were potentially capital.

The hassle involved in getting them the info they requested was worse than paying the tax upfront.
 
cally1990 said:
A boiler for a rental property is generally considered a capital allowance rather than a repair.
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Under what heading?

My understanding is that for rental properties, capital allowances are available only in respect of furniture and fittings.

I'd have counted a boiler as a fixture and thus falling outside this description.

This is the relevant summary on Revenue.ie
 
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