Just a thought about furnished v unfurnished

[msg2004]

Just had a thought. We rent out our property as unfurnished.
Signed new rental agreement last week.
we supply the cooker, I will look after but the fridge and washing machine, the T looks after. Me and my wife have supplied a table and two armchairs.
Can I offset the usual 10% for wear and tear?

Even If I supplied no furniture, who will check?

[mjbfire]

basicily everything you supply you have to look after, if it breaks.
What you mean ofset the usual 10%, if you mean charge 10% extra rent, then fine if the T agrees with it, on signing the AST.
If you mean from the Deposit then "NO".

What you mean
"Even If I supplied no furniture, who will check? " well the T I guess , when they move in.

[subjecttocontract]

You cannot claim the 10% wear & tear allowance on unfurnished properties, its only available on FULLY furnished property.

With unfurnished property you can claim the actual cost of replacements as they occour.

[bry123]

As the above poster mentions, you can only claim the 10% on FULLY furnished properties, otherwise you will have to claim for renewals as and when.

I doubt anyone would come round to your property to physically examine the furniture, but if HMRC asked, I expect you would have to produce rental agreements and inventories signed by yourself and the tenants.

[Telometer]

Lying on your tax return isn't very clever. They may not catch you, but if they do, for something as obviously fraudulent as that, the penalties and interest will make you wish you hadn't been so silly.

[Paul UK]

Could you not rent the fridge and washing machine seperately for a few quid a month?

[Telometer]

Could you not rent the fridge and washing machine seperately for a few quid a month?

I'm not sure they'd be up to the Decent Homes standard.

[midnite]

Is there a definition of fully furnished?

From reading this thread leaving an oven, hob and dishwasher as they are part of a fitted kitchen along with carpets and curtains would be classified as unfurnished.

Fo a property classed as unfurnished you can only use repair and replacement for tax purposes and not use wear and tear deprication on your tax returns.

Have I understood all of that correctly?

[TaxationPete]

Yes, for furnished you would have to be able to live and eat there without adding items. So dinning room furniture, lounge sofa, kitchen table, kettle, cutlery, pots and pans, bed/beds, wardrobe, etc, etc. That is Furnished. Regards Peter

[midnite]

Thanks Pete

[Wickerman]

I'm not sure they'd be up to the Decent Homes standard.

Most rental homes are above the decent homes standard - certainly higher than housing provided by the social sector (councils/housing assoc.).

Bear in mind a kitchen should be less than 20 years to be "decent" and bathrooms less than 30.

Both ages are pretty much unheard of in rental homes except at the bottom of the market.

For statistics on the distribution of "decent homes" and category 1 HSRSS hazards look on www.data.gov.uk (will take you a while to find the relevant data)

[Telometer]

but living in a fridge is probably not...

[JK0]

The 'decent homes standards' for the kitchen and bathroom made me chuckle. I have just bought a 1962 flat with most of the original fittings intact.

Surely if the items are still clean and serviceable, who is to say that they aren't decent?