Hi everyone, I’m looking to install a heat pump for one of my lets, and if I have this right, I cannot claim the costs as day-to-day running costs?
Even though the gas boiler is all but dead, I have been told it would not pass another gas inspection due this summer.
Also, have I got it right that I cannot claim it as a capital cost when I sell the property?
Can anyone who knows about taxes and things comment?
After all, I thought this was what the government wanted us to do?
Thanks,
Sally
Editor’s note: In most cases, replacing a gas boiler with a heat pump is treated as a capital improvement rather than a repair, so the cost is generally not deductible against rental income as a day-to-day expense. However, it should normally be added to the property’s capital gains tax base cost and may therefore help reduce any CGT liability when the property is eventually sold. As always, tax treatment depends on the specific facts, and landlords should seek professional advice where significant sums are involved.
