Sign up to get our free landlord tax strategies


To receive our seven FREE landlord tax saving strategies just simply complete the form below and the first strategy will be emailed to you immediately.

Sign up to get our free landlord tax strategies

Thank You!

Seven FREE property tax busting strategies reveal the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Which allowance should I use - wear and tear or renewals?

Question I let a flat furnished and obviously had to buy all the initial furnishings such as a bed, a sofa and tables. Are these allowable as expenses on my first year’s tax return? If so is their reducing value allowed to be claimed in future using the wear and tear allowance or am I obliged to use the renewals allowance?

Arthur Weller Replies:
There are two ways of claiming capital allowances for furnishings in a fully furnished residential property, the 10% wear and tear allowance, and the renewals allowance. See www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm. The renewals allowance is not relevant to you at present, because it is only applicable to ‘the net cost of replacing a particular item of furniture etc, but not the cost of the original purchase’.

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

The first issue is free so click here to try today!

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question