I read the blog below with interest, but I'm uncertain how this affects me as a landlord, could someone please elaborate.
My properties are unfurnished so I can't claim 10% wear and tear allowance , so if I were to put a new bathroom suite in on a like for like bases I claim the full amount, how does this change?
I have just spoken to HMRC, they have advised if your property is not furnished you can not claim the allowance for any furniture and white goods. However, if your Fridge/Freezer was an integrated appliance you could still claim for this. So the obvious answer is buy integrated appliances from now on, or let your tenants get thier own
Therefore if you have an unfurnished property if you replace something already there you cant claim it. Therefore you are likely to see a lot of landlords of unfurnished properties "repair" rather than replace their bathroom suite or kitchen.
For furnished property you can either now claim the repair cost or the 10% W&T.
My information came straight from HMRC, the advisor tracked down the internal article and read from the sheet. In hindsight I should have asked for the reference number so we can review. If anyone finds it please post a copy. I think what they are trying to stop is people buying a new washing machine for home and claiming it's for thier rental property. You can still claim for renewals if it is a perminant fixture, like a new bath, but if you can simply pick it up and move it like a washing machine, you can not claim for it.
have you ever seen that game at the sea side where you have a hammer and have to hit the small furry stuffed rodent and as soon as it goes down it pops up somewhere else.
I think thats the equivalent of what the government are attempting to do.
All that will happen is that fixtures will be replaced before they need to be but the item will be instaled in the landlords home, all of which will move to having built in appliances... And when they want a new one that one goes out of their house and into the rental property.
Fitting these things is hardly any more difficult that the free standing versions.
The only way that the intended approach would work would be by not giving relief for any renewals at all and to my mind the only thing that such can result in is more dilapidated properties and / or higher rents.
Alternatively we may see landlords sticking an old settee in their properties and calling them furnished so that they get the 10% wear and tear allowance.
As I say, hit a small furry rodent in one place and it just pops up in another...
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I also have a property that I rent out - unfurnished. However it does have a fitted cooker and an electric shower. If I replaced either of these, although I don't have any plans to at the moment, would they be capital expenditure or could I claim them as expense items?
I'll just read you blog to see if I can answer my own questions.
Sorry, I've not had chance to finish my research, I must just call HMRC again and get details of new PIM and BIM, I'll post back once I have something.
