Property – Wear and tear allowance

HMRC have replaced the 10% wear and tear allowance on property with relief for the actual costs of like-for-like renewals and replacements with effect from April 2016.

The replacement relief is available to landlords of unfurnished, part-furnished and furnished properties. The new relief applies only to the replacement of furnishings. The initial cost of furnishing a property is not included. It applies to the capital cost of replacing items such as:

  • Moveable furniture or furnishings, such as beds and suites
  • Televisions
  • Fridges & freezers
  • Carpets & floor coverings
  • Curtains
  • Linen
  • Crockery & cutlery

Fixtures integral to the building that are not normally removed by the owner when the property is sold are not included, such as

  • Baths
  • Washbasins
  • Toilets
  • Boilers
  • Fitted Kitchen units

If you are landlord in the Bromley / Orpington area please contact us if we can help with accounting and tax planning for your property business

By | 2017-02-23T16:35:54+00:00 February 23rd, 2017|Accountancy News|0 Comments

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