Tax - Wear and Tear

[bdh198]

Sorry, it's that time of year for taxing questions!

When you elect 'wear and tear' or 'replacement and renewal' is it on a property by property basis, or will the election apply to the entire portfolio?

I have a furnished property which I have elected to have taxed with the 'wear and tear' allowance, but I have recently acquired another property that will be let unfurnished. I assume I will therefore have to treat the unfurnished property on the 'replacement and renewal' basis. I can clear distinguish the expenses associated with each property, but will it cause any problems having one property on the 'wear and tear' basis, and one on the 'replacement and renewal' basis when it comes to submitting my return? I suspect this happens frequently with larger portfolios, but I just want to make sure I'm not missing anything.

Thanks in advance for any comments or advice

Solent

[Richlist]

When you elect 'wear and tear' or 'replacement and renewal' is it on a property by property basis, or will the election apply to the entire portfolio?

If you have a portfoliio containing furnished & unfurnished property then each group within the portfolio must be handled separately.

* Any replacements in an unfurnished property ( eg carpets, curtains, lighting, cooker, fridge etc) must be dealt with on a replacement basis.

* With furnished property you must elect to use either the replacement basis or the 10% wear & tear basis. ALL your furnished property needs to be dealt with on the same basis and once you have chosen a system you cannot change.

* What many people don't realise is that even if you elect to use the 10% wear & tear basis you can, in addition, claim the costs of any repairs to any of the furnishings....eg a washing machine.