Newsletter Autumn 2015

Replacing the furniture

Currently, landlords with fully furnished properties can deduct the 'wear and tear' allowance from their rental income before tax. This is worth 10% of the rents every year, and can be claimed irrespective of whether they have replaced any of the furnishings.

Landlords who let partly or unfurnished properties can't claim this allowance, and are prevented from claiming a deduction for replacing loose items such as curtains and floor coverings.

From 6 April 2016 the wear and tear allowance will be abolished. In its place will be a new rule allowing a deduction for the actual cost of furnishings replaced in all let properties. This will align the tax rules between furnished and unfurnished properties.