Kirkpatrick & Hopes - Succession Planning Accountants

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Wear and Tear Allowance abolished from 6 April 2016

The government announced in the Summer Budget that the wear and tear allowance is to be abolished from 6 April 2016.

This relief enables landlords letting furnished property to claim a deduction of 10% of the gross rents each year to cover the cost of replacing furnishings and white goods.

From 6 April 2016 landlords will only be able to claim the actual cost of replacing furniture. This will apply to property let furnished and unfurnished.

The relief only applies to replacements, the initial purchase will not be allowable.

The tax planning tip is for existing properties to see if you can wait until after 6 April 2016 before replacing beds etc.

Andy Scott

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