Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.

HM Revenue & Customs (HMRC) has clarified the tax treatment of fixtures and fittings in residential letting properties.

In a letter to the Chartered Institute of Taxation, HMRC has laid out how tax relief of furnished and unfurnished properties is expected to work.

HMRC policy and technical specialist Jas Bhanghu explains that the renewals allowance now has a ‘very limited application’.

“This would relate to short-life items like crockery and rugs that a landlord might expect to replace every year or so,” writes Bhanghu.

“However, the allowance does not apply to carpets or higher value items that landlords would not expect to replace that often. However, relief for this expenditure is available as a revenue expense.”

He also clears some of the issues confusing landlords over white goods.

“Washing machines, fridges and the like are not covered by the renewals scheme. They are capital items, but HMRC accepts where they are integrated appliances they would be deductible as a repair when replaced.

“Free standing white goods are not capital items and capital allowances are not available for furniture and household equipment provided for use by tenants in residential property.”

HMRC also explained that the 10% wear and tear allowance remains unchanged – but only applies to a buy to let or house in multiple occupation (HMO) let with enough furniture, furnishings and equipment that makes the property available for normal residential use.

The wear-and-tear allowance is deducted as 10% of net rents – that’s rent charged less services paid by the landlord that the tenant would generally pay for, like utilities.

The claim can be made regardless of whether any replacements or renewals have occurred during the year.

HMRC is also promising to review the impact of the changes on landlords.

Read the full HMRC guidance letter on renewals and wear and tear allowances

Please Note: This Article is 8 years old. This increases the likelihood that some or all of it's content is now outdated.


  1. What would the tax implications be for the landlord if they acquired their furniture (dining table / sofa etc) by renting rather than buying. Presumably the wear and tear allowance would be available but could the landlord opt to deduct the rental payments as an allowable expense instead or even as well as?

  2. \”However, relief for this expenditure is available as a revenue expense\” applies only to furnished lets, the the statement is not totally accurate.

  3. What happens is items are stolen? I you don\’t want to claim on insurance, (the excess is the same value), I guess replacing stolen items can be claimed as an expense?

  4. If my understanding is correct with the 10% wear and tear allowance on fully furnished buy to let properties/HMO there has always been the choice. You can choose to claim your expenses on an actual basis or claim the 10% wear and tear allowance. You cannot claim both. And once you decide which method you intend to use you must use it consistently. You cannot change it each year to suit your circumstances.


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