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MetropolitanAnthony
22-11-2010, 00:52 AM
Six months ago I started letting a flat on a 24 month AST. The rent is high. I am certain to incurr a tax bill on this rental income.

To mitigate ( i.e. reduce ) the tax, I declare the mortgage payments I make each month on my tax return.

To furnish the let, I decided to rent high quality furniture at the start of the tenancy by entering into a 24 month furniture rental agreement, synchronised with the tenancy. I therefore make furniture rental payments each month and these payments are an expense which directly supports the tenancy.

Can I declare these payments on my tax return and use them to reduce or even eliminate my tax bill?

MickyV
23-11-2010, 05:40 AM
I see no reason at all you cannot claim that as an entirely legitimate expense.

Phlash
23-11-2010, 11:29 AM
For clarity, if you are doing that, then you will not be able to claim your 10% wear and tear allowance - as you do not own neither did you spend capital on any furniture.