Residential let property business replaces storage heaters with central heating. Seems to be an improvement/capital in nature. But could it be argued that the expenditure is revenue under the "double glazing" principle ie replacing with modern day equivalent?
James Ward
Replies (3)
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Space heaters
It stems back to the 70's then space heaters, i.e. wall mounted electric heaters were as common as storage heaters. An electic fire in each room did not make it central heating. I have had several landlords claim the GCH as Enhancements offset against CGT on disposal with no questions, and I have also had a couple offset the CGH against revenue, again without question so it appears to be a bit open. I would also comment that some space heater systems are controlled from a central control timer unit and were deemed to be electrical cental heating. Regards Peter
"Central Heating"
I must first own up to not having researched this point at all BUT, by whose definition are storage heaters not central heating? I don't recall seeing anything in tax manuals (could be wrong), so I would say the point could be argued but spell it out clearly to the Revenue and the client. You may lose in the end but might be worth trying.
Not Central
Storage heaters are not classed as central heating so the true central heating i.e a central source of heat is an enhancement, also non of the original heating was utilised by the new heating and therefore a capital item Regards Peter