What is meant by the term fixtures and fittings and when can you offset the replacement of them against your income tax?

Fixtures and fittings are items that are classed as being an integral part of the property. If a new tenant moves into a property, they will expect these items to be in the property.

Examples of fixtures and fittings include:

- windows, doors, light fittings;
- kitchen units;
- bathroom suites;
- gas central heating systems and radiators or hot water supply tanks;
- gas fires, etc.

The most important point to understand about fixtures and fittings is that any cost incurred in repairing them or replacing them with a like-for-like product can be offset against the property rental income. This is regardless of whether the property is un-furnished, partly furnished, or fully furnished.

Two important conditions must be satisfied before you can offset the cost of replacing fixtures and fittings. These are:

a) The cost must be a ‘replacement’ cost. In other words, it cannot be for the installation of fixtures and fittings that were not previously in the property.

b) The cost must be for a similar, like-for-like product.

If both these conditions are met, the cost can be deducted from the rental profits.

This entry was posted on Friday, September 26th, 2008 at 11:22 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.