If you rent out furnished property, other than holiday lets, you are allowed to claim the cost either through:
10% wear & tear allowance
The allowance is given every year and is equal to 10% of the net of the total rent for the period less charges and services which would normally be paid by the tenant, such as Council Tax, water rates etc).
or
On a renewals basis
If you use the renewals basis you cannot claim for the original purchase of the equipment (fridges, hobs, ovens etc.) furniture or fixtures.
You can, however, claim the cost of renewing any of the above items, perhaps, even at the end of the let.
If you would like to discuss this further and join us at GC Accountants please contact our Tax Partner Harry Charalambou ACA ACCA on 020-8886-3672.
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken by GC Accountants or Base Property Specialists Limited for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
