Renewals Allowance- Unfurnished Property

[Friston]

I let an unfurnished property - but there are carpets throughout.
According to the IR's PIM 3200 document the renewals allowance is available for unfurnished property- but it is not entirely clear how this works.
Does it mean that when a new floor covering goes down you can offset the entire cost as expense or is there some way of claiming an annual wear & tear sum?
many thanks

[Tax Accountant]

I let an unfurnished property - but there are carpets throughout.
According to the IR's PIM 3200 document the renewals allowance is available for unfurnished property- but it is not entirely clear how this works.
Does it mean that when a new floor covering goes down you can offset the entire cost as expense or is there some way of claiming an annual wear & tear sum?
many thanks

You do not claim anything at all relating to the original expenditure. However, when you renew it, you can claim the whole of the amount spent in renewing the original furnishings.

Generally speaking, the 10% wear and tear allowance works better for those who are able to let their property fully furnished.

Ramnik

[cris2fer]

You do not claim anything at all relating to the original expenditure. However, when you renew it, you can claim the whole of the amount spent in renewing the original furnishings.

Generally speaking, the 10% wear and tear allowance works better for those who are able to let their property fully furnished.

Ramnik



Karongo can he not claim the original expenditure against CGT if he sells the property in the future ??

[Tax Accountant]

Karongo can he not claim the original expenditure against CGT if he sells the property in the future ??
No, the original expenditure is not an improvement nor incurred for the purpose of acquiring the property. Therefore this cannot be claimed in the calculation of CGT upon sale.

Ramnik