Tax benefits...

[memond1]

Hello,

I have a question regarding the furniture that I have bought for my properties. Because I purchased many of them through friends and on car boot sales I have not been able to get receipts. How do I go about claiming this back at the end of the year, or I am not able to.

Thanks

Martin

[plym77]

Hi Martin

I would ordinarily suggest that you claim the expenses, so keep a note of what you have spent so far, however in future explain that you need a receipt to family or friends or at a car boot sale and I am sure that they would provide you with a simple 'sold as seen' written receipt.

Also remember that unless you have a Furnished Holiday Letting you would not normally claim furniture costs unless you are claiming on a 'replacements basis' rather than wear and tear.

Replacements Basis - this means that the first purchase is not an allowable expense, however, you can claim when you have to replace - ie. replace the washing machine etc.

Wear and Tear - broadly the expense deduction it is 10% of total rental income less water and council tax paid by you on that property. This is ordinarily the best route as people do not tend to replace furniture at a rate that would warrant the replacements basis.

I hope this helps.

Kind regards

Sherena

[Melboy]

When I let furnished property (I don't now, only unfurnished) the Revenue only allowed 10% per annum deduction on all furniture to cover wear and tear which was deducted from from your tax return financial figures.

As far as I know there was no allowance for the initial furniture purchase.

[plym77]

Melboy right, and ordinarily it is the wear and tear allowance people claim as this usually gives a better claim than the replacements basis, however, the replacements basis does exist and as said, will cover replacements only, not initial purchase - and most people do not look to replace furniture on a regular basis which is why you do not often see this basis. Also, once you decide which option to take, you stick to it, you cannot swap between the two.

If however you have a furnished HOLIDAY letting (and the qualification is difficult!), then you can claim the initial purchase via capital allowances - however, this will not be applicable to most people on this forum

Sherena