Jim123

Thanks very much

All sorted now thanks for your help

Sorry just checking, whilst I can’t claim the loan back as an expense, to reduce income and therefore tax paid. Can it be added to the, I think the term is “relievable amount”?

Hi thanks very much. Effectively what I take from that, is I can claim for the boiler. But the loan will be covered under the Sections 272A and 272B of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA05) restrict the proportion of interest that can be claimed, on a sliding scale down from 75% to 0% in successive tax years. it being after 2020, 0% of the loan can be claimed back.

Or I’ve just thought of a possible third option. Claim the cost of the replacement boiler in full. Then just claim the interest on the loan each financial year. Please advise thanks.

Is a loan a claimable expense? I am looking at the advice online- “Expenses incurred wholly and exclusively for the property rental business” For example a boiler is replaced. But a loan is taken out to cover the costs, to spread payments and make it affordable. Do you claim for the whole boiler cost. Or do you claim for the monthly expense of the boiler plus interest. As the boiler needed replacement (not improvement) and the loan is an expense incurred wholly and exclusively for the property rental business? Thanks