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I purchased a 2006 Subaru which stated a 12 warrenty..When i took the car in for a W.O.F.it was rejected because of a C.V. boot. On taking the cost up with the car retailer i was told it did not cover Rubber ..tyres cv boots and any other rubber on the car. Is this correct?

You will need to read the terms and conditions of the warranty to confirm if it doesn't cover this. Most extended warranties do not cover damaged cv boots as they don't cover seals, gaskets (unless it's part of a repair it's covering) or any plastic component due to gradual deterioration, damage caused by external factors and tyres.