News

Tax News

22/07/2016
 

How the Government’s recently-implemented changes to the ‘Wear and Tear’ Allowance might affect landlords.

From 6th April this year (2016), another big change came into effect and the 'wear and tear' allowance for furnished properties was taken away.

This essentially means that landlords won't be allowed to claim 10% on their tax returns for any properties that are furnished.

The Government are trying to encourage landlords to invest more in their properties by raising the standards of the furnishings and the appliances in their property.

Although you will not be able to claim your 10% if you replaced or purchased a bed and mattress, the full purchase amount can be offset in your tax return.

However, as a landlord what you need to realise is that to get the same tax breaks you had been receiving before, you will now have to spend 10% of the rental income on replacement furniture and fittings.

So for example, if your rental income on your property for the year was £6,000, you would have to spend £600 on replacement furnishings and appliances to get the equivalent 'wear and tear' allowance.

Landlords need to consider how this will affect them and how they will use the tax change to plan for the future.

 

 


View all News

 
 
 

We also advertise on

ZooplaPrime LocationOn The Market

Members of

DPS
DPS