Allowable Expenses ?

[Richlist]

We all know that from April 2013 HMRC no longer allow expense claims on the 'renewals' basis.

So, from this date, for

* Fully Furnished property...... we can only claim the 10% wear & tear allowance, and for

* Part Furnished/ Unfurnished property.......we can't claim the cost of replacement contents at all.

But....does anyone know if we can still claim the cost of repairs to those same items ?

[Carryon Regardless]

RL 'from your post' I can't see what's changed. As I understood it the 10% was only for furnished previously.

[Melboy]

I would say anything that i requiring a repair within a rented property is a tax deductable allowance under HMRC rules to the landlord.

In other words not a capital expense or fair wear and tear expense.

[Richlist]

RL 'from your post' I can't see what's changed. As I understood it the 10% was only for furnished previously.

Thats correct but landlords had a choice with furnished property.....they could claim the 10% wear & tear allowance or claim the actual cost of the renewal. With unfurnished the landlord could claim the actual cost of renewal of say a cooker or fridge etc.

Now....since April this year, you cannot claim the actual cost of renewals in unfurnished or furnished. Thats the change.

[Duck]

I find it quite unbelievable that now we have lost the renewals concession we can no longer claim tax relief when we replace:

carpets
curtains
fridge, freezer, washing machine, cooker etc.

I think I can recall reading somewhere that we can repair these items and claim tax relief providing that the repair cost is no more than half of the replacement cost, if it does cost more than half then I believe HMRC consider it a replacement, so no tax relief.

It's not cricket is it.

[Richlist]

No its not cricket but its small changes like these that will help the UK to eventually resolve our economic crisis.

In my opinion the tax allowances on rental property are more than generous........its just that many landlords don't claim everything they are permitted to claim.

[Dave A]

Have to ask for a clue, what are the likely things that we are missing? I have to hold my hands up and say that I rely totally on my accountant, so there's a good chance I'm nowhere near genned up enough.

I have literally just emailed the accountants asking for clarification as we have a tenant likely to leave in September, as he is an agricultural worker and has been in the house for a long while I'm expecting to have to re carpet, re decorate throughout. I was also expecting to do some work on the kitchen. I don't begrudge the tenant any of this as he has always paid rent on time and as said been there for a long time and never asked for anything to be renewed, but for tax planning I need to know where best to spend my money.

From what i have read above, when tenancies are renewed, we will take out white goods and not replace them.

Dave

[Richlist]

If your using an accountant your most of the way there. Unfortunately accountants are like letting agents......there are good, bad and indifferent but often people employ an accountant and think they have all the tax angles covered.....not necessarily so.