Capital Gains Tax Capital Expenditure

masonj3

Hi

I’m trying to calculate my moms cgt liability using calculator on gov website.
There is a section to input a figure for capital expenditure - does anybody know if a new boiler would count towards this deduction? The previous boiler broke so an new one was fitted.

I can’t find clarification either way if this meets cgt capital expenditure definition. This is not a btl but she had a gap of 4 years in ownership when she did not live at the property.

Thank you to anyone who can help 😊

Pennywise

No, a replacement boiler isn't capital.

00ec25

such expenditure is classed as revenue not capital because it is a "repair", ie you started with a boiler (the fact it did not work does not later its existence, and you ended with a boiler (the fact the new one works does not alter its existence)


you simply replaced an asset, you did not buy an asset that was not there before, and thus you did not incur expenditure on a capital improvement

masonj3

Thank you for your replies - I had a feeling it wouldn’t be but I wanted to check as had read a few different things and got confused, I
Knew if it had just been an upgraded replacement it wouldn’t qualify but I wasn’t sure if it might be looked at differently as the old system had totally stopped working so was an essential expenditure so to speak and that the model installed would have been an improvement against a system 15-20 years old.

I probably haven’t explained that very well 🤣. Thank you for the clarification 😊