Claiming for Boiler & Loft insulation

[jase]

Hi All,

Apologies if this is in the wrong area but weren't quite sure where to ask this one. I'm about to rent my house, once I've completed on my new property.

The old original boiler has just packed up so I need to new one along with a couple of rads and get it done before the girl moves in. I'm also going to put loft insulation down as there has never been any.

For the boiler I was going to get a small loan to cover the cost and use the surpless rent money to pay the loan off.

Can I claim anything back when I do the tax for either or both? I do plan to see an accountant in the near future but just wanted to see what you guys would do?

Thanks.
Jason

[Tax Accountant]

Hi All,

Apologies if this is in the wrong area but weren't quite sure where to ask this one. I'm about to rent my house, once I've completed on my new property.

The old original boiler has just packed up so I need to new one along with a couple of rads and get it done before the girl moves in. I'm also going to put loft insulation down as there has never been any.

For the boiler I was going to get a small loan to cover the cost and use the surpless rent money to pay the loan off.

Can I claim anything back when I do the tax for either or both? I do plan to see an accountant in the near future but just wanted to see what you guys would do?

Thanks.
Jason

I would say insulation will be improvement and not allowable as an expense of your lettings business.

I would also say that replacement of the boiler and radiators have not been necessitated due to your lettings business. As such, you would not be entitled to claim for these either.

If these are in perfect working conditions, but you still wanted to replace them to make the house more attractive for letting, you will be able to claim for them as expenses.

Ramnik

[jase]

ok thanks for the replay..

[tenant29]

Some local councils offer a grant for installing roof insulation over residential property. Check out if you qualify .

[ivory]

I would say insulation will be improvement and not allowable as an expense of your lettings business.

Ramnik

We are just doing our tax return and I thought loft/wall insulation was allowable at the moment under a Landlord incentive scheme? BN 50 - Landlord's Energy Saving Allowance?

is this right?

Ivory

[Tax Accountant]

We are just doing our tax return and I thought loft/wall insulation was allowable at the moment under a Landlord incentive scheme? BN 50 - Landlord's Energy Saving Allowance?

is this right?

Ivory

Yes, according to BN 50 quoted by you, expense on Energy Savings is allowable as an expense and not considered an improvement. Apologies for the earlier reply in not realising that this is an Energy savings expense and thus allowable notwithstanding that it is a capital expense.

Ramnik

[steveandbee]

:
:
If these are in perfect working conditions, but you still wanted to replace them to make the house more attractive for letting, you will be able to claim for them as expenses.
:
:
Ramnik
We're also in a similiar situation in that we need to replace the bolier before we rent out our old home as it's on death's door (someone need to stand next to it to reset it every 5 minutes whenever the hot water is being used unpstair!) but we've not signed anything with the Renting Agency to commit.

The question is: Is the expense allowable?

[Tax Accountant]

We're also in a similiar situation in that we need to replace the bolier before we rent out our old home as it's on death's door (someone need to stand next to it to reset it every 5 minutes whenever the hot water is being used unpstair!) but we've not signed anything with the Renting Agency to commit.

The question is: Is the expense allowable?

This is not an expense out of choice to make it more attractive for letting but an expense out of necessity prior to commencement of letting.

In my opinion, this is not an allowable expense of your lettings business.

As you are lettings your 'only or main home' for the first time, interest on any existing loan will be an allowable expense. Additionally, you could borrow upto its current market value and all interest will still be allowable as an expense of your lettings business. Any capital raised for re-mortgaging could be used for any purpose, including paying off or reducing the mortgage on your new main home.

Ramnik

[steveandbee]

Many thanks! But I recalled reading that less than £15,000 income from rent the expense need not be itemise. So in theory can I still claim? Am I being too naive?

[Tax Accountant]

Many thanks! But I recalled reading that less than £15,000 income from rent the expense need not be itemise. So in theory can I still claim? Am I being too naive?

Are you being too naive? Apparently yes.

Just because you are not required to itemise the expenses separately, doesn't mean that you could include in the total anything you like. You are still supposed to make and retain a list of all your ALLOWABLE expenses making up the total claimed. You could be required to give the details of items making up the total in case of an enquiry from the tax office.

Ramnik

[steveandbee]

Many thanks again. Point taken. FYI I intend to find a accountant for all the necessary steps required but this forum has been very uesful for pointers!

[Tax Accountant]

Many thanks again. Point taken. FYI I intend to find a accountant for all the necessary steps required but this forum has been very uesful for pointers!

OK You are welcome.
Pay It Forward.
Ramnik