Is furniture tax deductible on new purchase of property?

**nantes** · 05-01-2013 13:10 PM

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?

**Mr Green** · 06-01-2013 16:14 PM

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

**nantes** · 07-01-2013 20:52 PM

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?

**Phlash** · 07-01-2013 23:30 PM

Originally Posted by nantes

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.

**mind the gap** · 10-01-2013 20:12 PM

What does flipping a property mean, please?

**Dan_Manchester** · 10-01-2013 20:51 PM

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

Have you not seen one of these before?

**Moderator2** · 10-01-2013 20:53 PM

Looks like a flippant reply to me.

**Mrs Mug** · 10-01-2013 20:55 PM

Originally Posted by mind the gap

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.