Buy to Let Properties - The comings and goings of tax relief
15th October 2015
The rules for claiming expenses against property income changed in April 2013 and for the time being there is no tax relief available on replacement furnishings, carpets, free-standing appliances etc. in unfurnished or partly furnished properties. A wear and tear allowance is available for these items in fully furnished properties.
The rules will change again from next April 2016. Subject to the proposals in the summer budget becoming law when the Finance Act is passed through Parliament, tax relief will be available for the costs of replacing furnishings and other items such as , appliances, carpets, curtains and linens in a rental property. It is proposed that the wear and tear allowance is abolished at the same time.
Landlords needing to spend money on replacing these items, may therefore wish to wait until after April 2016 if possible, to ensure they receive tax relief. Normal building repair and maintenance expenditure is not affected and does not need to be delayed.
Author: Karen Oliver, Tax Manager
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