Is a new boiler an allowable expense for landlords?
Last verified 23 October 2026
Usually, yes. HMRC treats replacing a broken-down boiler as a repair, so the cost is normally an allowable expense against rental income. If the work goes well beyond replacing what was there and improves the property, the whole cost may be capital instead.
A repair restores an asset to its original condition, sometimes by replacing parts of it. GOV.UK gives replacing a broken-down boiler as an example of a repair. HMRC's manual adds that using modern materials or newer technology does not by itself turn a repair into an improvement. Alterations due to advances in technology are generally treated as an allowable repair, so a modern equivalent boiler is normally still a repair.
The answer changes when the work is a significant improvement, for example a new system designed to carry a much greater load than the old one. HMRC treats the whole cost as capital expenditure where a significant improvement arises from the change. Capital costs are not deducted from your rental profit. Keep the invoice and a short note of what was replaced and why, so you can show it was a like-for-like replacement if HMRC asks.
Read next
- What is Capital vs revenue expenditure? →
- Allowable Expenses for Landlords (2026) →
- Rental income tax calculator →
Sources
- GOV.UK: Income Tax when you rent out a property: working out your rental income
- GOV.UK: PIM2030, Deductions: repairs: is it capital?