Good afternoon everyone.
I have a feeling I'm mixing up my tax law here and overcomplicating the situation.
Client has residential property income. He has replaced the central heating system in one of his properties. I'm reasonably confident with the issues surrounding whether something is considered a repair, and that modernisation doesn't necessarily make it an improvement etc. My question is whether it has to be treated as capital expenditure because it is an integral feature (I think) and has been replaced in it's entirety. If this is the case then any discussion surrounding whether it is an improvement is presumably irrelevant. Or is it being an integral feature not relevant in residential property and I'm making this more complicated than it needs to be? In which case it is presumably a judgement call.
We have access to an 'expert' tax line. I did call them to discuss it. They basically seem to search the HMRC guidance and read what it says. They had to phone me back twice to change what they had originally told me, and I just don't feel confident that they are advising from knowledge - more from google!
Any help would be gratefully received.