Tax - wear & tear allowance

[bdh198]

I have a quick question regarding the wear & tear allowance for self-assessment tax purposes.

As far as I understand it you calculate the wear and tear allowance as 10% of the net receivable rents, which is the rent paid less any expense incurred by the landlord that would usually be a cost associated with occupation; for example, electricity charges, council tax etc.

However, am I correct in assuming that those 'costs of occupation' should only be deducted from the 'net receivable rents' during those periods when you have incurred those costs while the property is also rented out? In other words if I pay an electricity standing charge for a couple of months while the property is vacant then those should not be deducted from the 'net receivable rents' calculation?

This assumption seems to make sense, but I haven't been able to find any confirmation of this on the HMRC website, and it's not the right time of year to be calling HMRC for some quick advice!

Thanks in advance for any advice or suggestions.

[Richlist]

In other words if I pay an electricity standing charge for a couple of months while the property is vacant then those should not be deducted from the 'net receivable rents' calculation?

Thats correct.

For the majority of landlords the net rent is often the same as the gross rent. Only a small proportion of landlords pay the utility bills for their tenants. Any utility bills paid by the landlord (gas, electric, water, sewerage or council tax) during voids are a separate legitimate expense that can be offset against rental income

[bdh198]

Thanks Richlist