Expenses - Furniture

[kohini]

Hi

I have just rented out my home and will be moving into my new home in a couple of months.

I furnished the flat with quite a few personal items which I thought would be eaiser to leave behind (bed,sofa, washing machine etc).

Now that I have to buy all new furniture/white goods for the new house can I claim (or part claim) these furnishings on expenses?

Thanks in advance... :)

[landlord mortgages]

You can either apply inland revenues 10% wear and tear (most landlords choose this option ) OR depreciation over a set number of years...I think 4 years

Lee

[Tax Accountant]

Hi

I have just rented out my home and will be moving into my new home in a couple of months.

I furnished the flat with quite a few personal items which I thought would be eaiser to leave behind (bed,sofa, washing machine etc).

Now that I have to buy all new furniture/white goods for the new house can I claim (or part claim) these furnishings on expenses?

Thanks in advance... :)


You cannot claim depreciation as suggested by Landlord Mortgages.

It is irrelevant whether you furnish the let property with used or new furnishings or how much it cost you to furnish the property.

You can claim:

Either (1) Wear & Tear allowance equal to 10% of gross rents (assuming tenant pays all utility bills). This allowance can be claimed every year, including the first year, regardless of whether or not the furnishings are replaced or the cost of replacements.

Or (2) renewals allowance, ie the cost of renewing the furnishings as and when these are replaced. This method does not allow you to claim anything in the first year.

Whichever method you choose, you must stick with this all years, ie you cannot change and chop from year to year.

In almost all cases, the Wear & Tear Allowance is beneficial.

Ramnik

[landlord mortgages]

Ramnik, Have you seen a landlord apply anything but the wear and tear allowance?

Whats the percentage split between the two options?

Lee

[Tax Accountant]

landlord mortgages:
Ramnik, Have you seen a landlord apply anything but the wear and tear allowance?

ANSWER:
Lee, have I suggested otherwise? I think you may have misread my reply as you can see from my reply quoted below:

''In almost all cases, the Wear & Tear Allowance is beneficial''

landlord mortgages:
Whats the percentage split between the two options?

ANSWER: Why do you need this split? Sorry, but I don't have access to HMR&C database.

landlord mortgages:
You can either apply inland revenues 10% wear and tear (most landlords choose this option ) OR depreciation over a set number of years...I think 4 years.

ANSWER: I still maintain that depreciation is not an option as suggested by you.

Ramnik

[landlord mortgages]

Clearly ramnik you have put right my misunderstanding of the tax position re alternatives to the favourable wear and tear allowance.

Ramnik, why don't you give us an account of a great opportunity for landlords ie. putting property into trust....this being touted by some of my top landlords

Lee

[Tax Accountant]

Lee, I would urge your 'top landlords' to seek advice from suitably qualified professionals in the field of Trust Law if they need ''an account of a great opportunity for landlords ie. putting property into trust....''.

If they wish to field specific queries in this forum, they are of course free to do so.


Ramnik