Taxation Question

[matilda]

I seem to have read somewhere that a tax claimable deduction against rental income can be made of 10% for "depreciation"

Can anyone kindly confirm or refute this?

Many thanks

[Trenners]

Hi shedloads,

There is a 10% capital "wear and tear" allowance that can be offset against rental income for FURNISHED properties. I am not an accountant .... just a humble landlord! .... so I would advise you ask your accountant whether you can make this deduction against your buy to let investments ...... and the implication of doing so ......

Best Wishes

Mark

[Chestnut]

The 10% Wear and Tear appears as a box on the (Short) Tax Return in rented property section. "...10% of net rent on furnished accomodation after council tax and water rate paid by landlord".

I opt for the Repairs and Maintenance box. I've read somewhere you can't do both, only one or other, and concluded that R & M (inc any management fee) is preferred as may sometimes exceed the 10%.

I'm not an accountant!

[Richlist]

You must elect to either.......claim the 10% of gross rents for wear & tear OR claim actual costs of replacements NOTE: you cannot opt to change from one to the other.

If you claim the 10% weat & tear allowance it is for replacements only and you CAN STILL claim for the costs any repairs to the same items in addition to claiming the 10% allowance.

The allowance does not include fitted items such as built in cookers or fridges which form part of the structure and the replacement of which can be additionally claimed.

The 10% allowance applies to FULLY furnished property only.