Question

Tax (Wales)

Fitting fire alarm allowable tax deduction

24 Aug 2016 | 1 comment

We have 3 small rental properties and last year had fitted mains power ‘interlinked’ fire alarms both for improved safety and in anticipation that it will be mandatory in the future for all properties not only new builds. Would this be considered an allowable ‘repair’ expense for tax purposes??

Answer

1 Comment

  1. guildy

    Tax is one of my weakest subjects I’m afraid. However, if there were already fire alarms installed (for example simple battery ones) and they were faulty, I believe it’s generally accepted that where a replacement is necessary and more cost effective than a repair then even a better version is acceptable as a repair. For example a wooden window beyond repair is okay to be replaced with uPVC.

    However, if there was nothing there in the first place, it might fall more along the line of an improvement.

    HMRC produces some useful guidance on the question of repairs v renewals which might help.

    As a Guild subscriber, you can speak to an accountant for 10 minutes for free.

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