Tax regime for landlord letting 'confusing'

News Category: Legal

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Old boilers are not being replaced because of a confusing tax regime related to property management, an expert has suggested.

According to David Lawrenson from landlord advice website lettingfocus.com, rental property owners who let out furnished properties are not being sufficiently encouraged to replace old boilers by the HMRC, because its tax rules related to wear and tear allowance are unclear.

The tax body needs to declare that boiler replacement costs are included in the ten per cent deduction which is offered to landlords on equipment they would be expected to replace in an unfurnished home, Mr Lawrenson suggested.

The HMRC should include boiler replacement costs under the Landlord Energy Saving Allowance, he added.

Mr Lawrenson continued: "The current tax regime in the UK is confusing … Many landlords will keep an old boiler going for longer than might be best from an environmental point of view."

The property expert's advice comes after Gas Safe Register warned that landlords and other property owners could be putting the safety of their tenants at risk by fitting gas and electrical appliances themselves, rather than turning to professional tradesmen.

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