Replacing Boiler in our Rented Property

[Sophrosyne]

Say you are replacing a non functioning boiler aged 10 year + with a new energy efficient boiler this would have to be considered like for like as the older boilers are no longer being manufactured. I am assuming that logically they would each have similar outputs.

Yes, I would think so, in particular, if the existing type of boiler was no longer manufactured.

I think that common sense would dictate that if it is the nearest replacement rather than an obvious bells and whistles upgrade, then that should satisfy the "maintenance" test.

 

[HelgaWard]

Thanks everyone for your replies.

 

[Bronte]

I don't see anything peculiar about Bronte's opinion. The general rule is that if it's merely a replacement, it's an expense, and if it's an improvement, it's capital.

Boilers tend to be rather functional pieces of equipment and unless your new one has major tangible benefits compared to your old one, it's usually far more likely to be a cost item rather than a capital expenditure than enhances the value of the property.

(By the way, I wouldn't be 100% sure that a boiler can qualify for wear & tear capital allowances on furniture and fittings, as I would see it as a fixture rather than as a fitting. - but I think the point is rather moot here.)

Yes that's it Tommy, I think that's what my accountant said to me and there was no question of it going under wear and tear. In relation to tangible benefits all I know is that boilers are forever needing replacing, fixing, minding, an endless souce of problem they have been in general.

 

[Bronte]

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?

You can ring today and you'll get a different answer on Friday. Do it by email but expect to wait weeks for a response. And even that response mightn't be right.

You have my accountant and accountant poster Tommy McGibney to go on now. But as ever be on notice it is you signs the returns, not your accountant. I'm preparted to discuss and take my accountants advice with his experince and I'm prepared to argue anything with revenue.

 

[T McGibney]

It's neither furniture nor a fitting. In my view, it's plant/machinery. The existence of the various accelerated capital allowances schemes can also be of assistance. They cover items such as energy efficient boilers. If there are accelerated capital allowances available for certain types of boiler, then logically there should be standard capital allowances available for standard boilers.

I've never heard of plant & machinery capital allowances being available in respect of a residential property. Am I missing something?