February 23, 2009
Property Taxation Gets Confusing
Residential landlords in the United Kingdom are facing confusing tax laws concerning whether or not they are eligible to apply for a tax allowance if they replace old boilers in rental homes, according to David Lawrenson of LettingFocus.com.
The problem is that landlords rarely receive adequate encouragement in the form of tax allowances, which would lead them to replace old boilers after years of wear and tear. One of the best ways to ensure that more landlords replace boilers in their residential properties is if HMRC would clearly and publicly declare that they would be able to claim all related expenses as part of the 10 percent tax deduction allowed for any equipment or improvements made to a rental home.
Lawrenson also suggests that tax officials would be well advised to include the costs associated with replacing an old boiler in the UK’s Landlord Energy Saving Allowance. Not only would new boilers ensure much greater safety for tenants in homes heated by gas, but it would also have a very salutary environmental impact, since new boilers tend to be more energy-efficient. All of this is especially important in light of the fact that the Gas Safe Register recently released a report in which it asserted that some landlords were trying to save money on the installation of new gas appliances by simply fitting them by themselves, without professional help. A clarification of tax allowances concerning boilers, however, might allow for landlords to save on some of these expenses, thus better ensuring the safety of their tenants, with professionally fitted new appliances.
