Carpets & renewals basis

[Landlordfromwales]

Hi, I've been lurking on the forum for a while and I think it's a great resource.

Just a quick question:

I've recently purchased my first buy to let. The carpets in the property were pretty ropey to say the least.

I replaced them all soon after purchase. Now I'm not going to be letting the property furnished so the 10% wear & tear allowance is not available.

I understand though that I am still eligible to claim for items such as this under the "renewals method" I know too that I am only able to claim when I replace an item not for the first purchase.

My question therefore: Does purchasing the house with the carpets count as the original purchase of those carpets therefore replacing them now will qualify? OR do I have to wait until I replace the carpets again?

Hope that makes sense! Thanks in Advance.

Dan

[Telometer]

No this purchase does not qualify for a tax deduction.

You "effectively" purchased a house without carpets - face it, you wouldn't have done anything different whether or not the carpets had been in when you bought. Your first lot of carpets are therefore capital in nature.

[Ben Tayo]

Unfortunately carpets do not qualify for a tax deduction either the initial cost or renewals, if you are claiming wear and tear allowance. See What the 10% wear and tear allowance covers http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm

[Telometer]

Unfortunately carpets do not qualify for a tax deduction either the initial cost or renewals, if you are claiming wear and tear allowance. See What the 10% wear and tear allowance covers http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm

Fortunately, OP is letting the property UNfurnished, so they DO qualify for a tax deduction on replacement - effectively a "renewals basis".