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Aug, 2014

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  1. #1

    Default Is furniture tax deductible on new purchase of property?

    Is furniture (such as sofas, dining table and bed) a tax deductible cost on the purchase of of a new property which is going to be let fully furnished. Are light fittings classed as furniture?

    If furniture is tax deductible, is it an annual expense or a capital expense?

  2. #2
    Join Date
    Aug 2012
    Posts
    109

    Default

    My understanding is that with furnished property you can either claim the 10% wear and tear allowance or the cost of replacements. So not the initial cost in either case. I've always opted for the 10% but there may be circumstances where the replacement basis is more beneficial. An example could be where you buy a fairly dated furnished property and find that it doesn't let well so decide to upgrade the furnishings to improve the return.

    http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm

  3. #3

    Default

    Thanks for the information. Very helpful. If I were to flip the property, would I be able to declare brand new furniture as a capital expense?

  4. #4
    Join Date
    Jul 2010
    Location
    Nottingham
    Posts
    902

    Default

    Quote Originally Posted by nantes View Post
    Thanks for the information. Very helpful. If I were to flip the property, would I be able to declare brand new furniture as a capital expense?
    It would be an income expense, as your flip profits would be taxed as income and not as a gain.
    I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

    That also means I cannot share in any profits from any decisions made!

  5. #5
    Join Date
    Jul 2008
    Location
    Yorkshire
    Posts
    24,592

    Default

    What does flipping a property mean, please?
    How is education supposed to make me feel smarter? Besides, every time I learn something new, it pushes some old stuff out of my brain. Remember when I took that home winemaking course, and I forgot how to drive? Homer Simpson

  6. #6

    Default

    http://sarahsuperbreak.files.wordpre...down-house.jpg

    Have you not seen one of these before?

  7. #7
    Join Date
    Jun 2011
    Location
    Stevenage
    Posts
    1,369

    Default

    Looks like a flippant reply to me.
    I also post as Mars_Mug when not moderating

  8. #8
    Join Date
    Mar 2008
    Posts
    2,108

    Default

    Quote Originally Posted by mind the gap View Post
    What does flipping a property mean, please?
    "Flipping" a house consists of buying a run-down property below market price, increasing its value somehow, and rapidly re-selling it for a quick profit.
    These comments assume you are in England/Wales, and that your last tenancy agreement was dated after 6th April 2007.

  9. #9
    Join Date
    Jul 2008
    Location
    Yorkshire
    Posts
    24,592

    Default

    Thank you Mrs Mug!
    How is education supposed to make me feel smarter? Besides, every time I learn something new, it pushes some old stuff out of my brain. Remember when I took that home winemaking course, and I forgot how to drive? Homer Simpson

  10. #10
    Join Date
    Jul 2008
    Location
    Yorkshire
    Posts
    24,592

    Default

    Quote Originally Posted by Dan_Manchester View Post
    http://sarahsuperbreak.files.wordpre...down-house.jpg

    Have you not seen one of these before?
    Seen one?I feel as though I live in one, most of the time!
    How is education supposed to make me feel smarter? Besides, every time I learn something new, it pushes some old stuff out of my brain. Remember when I took that home winemaking course, and I forgot how to drive? Homer Simpson

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