Wear and Tear Tax Rules

  • Filter
  • Time
  • Show
Clear All
new posts

    Wear and Tear Tax Rules

    I have recently purchased a furnished holiday home and our first let managed to lose cutlery and break half the crockery. I have now replaced all these items but can these be put on the tax return as expenses and be tax deductible or not? The tax rules are confusing:
    If you replace a domestic item in a property which qualifies as a Furnished Holiday Let, Replacement of Domestic Items relief isn’t available. You will continue to be able to claim capital allowances on these items.
    If not, how should this type of thing be treated?
    Many thanks.

    The people you let to were obviously liable for the breakages/loss of cutlery: Presumably you recovered your loss (or should do so) from deposit so no financial loss incurred. So nothing to claim for. Or have I misunderstood?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


      The tax treatment of replacing items in a holiday let is different, because these items are capital expenditure for that type of business.

      It's not something I've ever done, though, because the entire basis of a tax return for a holiday let is not the same as one for a residential landlord.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


        Send an enquiry to HMRC about your confusing situation and ask how to claim the cost of replacing lost cutlery.


          I have run a Self Contained Holiday Unit ( posh name for Holiday home!) for a few years now.

          I claim all costs for the initial purchase of all furniture, TVs, cups, saucers, kitchen utensils, bedding, all cleaning consumables and cleaning services, as well as any subsequent replacements - basically everything to run the business. You should also be paying Business rates on it, not Council Tax, however as my business is below a threshold, here in Scotland I pay no Business rates.

          Furnished holiday homes are treated differently from normal rentals. "you are entitled to plant and machinery capital allowances for items such as furniture, equipment and fixtures" .


          If unsure, best speak to an accountant. If you use an Agency to rent your property out, also ask them for advice.


            If your tax return form ( for holiday furnished letting ) is SA105 and associated Notes . . You will find the Notes to this form- under box 25 , it directs you to enter the replacement cost of crockery and cutlery in box 36.

            You can google search "hmrc + SA105 Form and Notes" and download the information. . If you still don't understand , get help from a local accounting shop or look online for assistance for completing the first tax return.


            Latest Activity


            • Furnished Holiday Let - Tax Questions
              Hi I have a property that I'm letting through a short term holiday letting company. All seems good so far, but can someone let me know how the tax works on this? Its located in Brighton if that makes a difference?

              Also as this is a "furnished Holiday Let" what can I get away with...
              13-07-2018, 15:17 PM
            • Reply to Furnished Holiday Let - Tax Questions
              BBC Moneybox today suggested new rules in Oct will require LL to spend min 1 night in holiday Let to gain any tax advantage for duration of Let.
              15-07-2018, 22:46 PM
            • Reply to Furnished Holiday Let - Tax Questions
              1. You speak to a tax inspector, not the person that answers the phone (phone your own tax office, or the one local to you).
              2. Get the tax inspector to put the advice in writing to you.

              I have done this several times.
              Once I was given unsolicited information that allowed me...
              15-07-2018, 14:45 PM
            • Reply to Furnished Holiday Let - Tax Questions
              Personally, I wouldn't take advice from HMRC, a) the people manning the phone aren't qualifies and b) it's like taking legal advice from the police about a criminal matter.

              You need to sit down and talk it through with an accountant in some detail (I'd imagine Brighton has quite a lot of...
              14-07-2018, 08:35 AM
            • Reply to Furnished Holiday Let - Tax Questions
              Best to phone in and ask a tax inspector.

              But, I believe the position includes:
              • To get any tax relief, the property has to be available to let for at least 210 days each tax year and actually let at least 105 days each tax year.
                if property is bought part-way through a tax year,
              13-07-2018, 21:29 PM
            • Buying new commercial, set up Ltd co?
              I own a number of properties, earn over the 40% threshold, trade as a private individual and do a self assessment return each year for Land & Property.

              Now, I'm looking at a new property, but commercial this time, I'm 50/50 about setting up a Ltd company to purchase the new property...
              11-07-2018, 13:17 PM
            • Reply to Buying new commercial, set up Ltd co?
              A limited company doesn’t have to have been operating before you buy your first property within it, indeed many lenders will use your personal involvement in Property as a measure of credibility.
              If you decide to include your children , are they over 17 years of age and what percentage will...
              11-07-2018, 20:04 PM
            • Capital gains sale

              Wonder if you can help.

              I own a currently rented out property and looking to sell.

              Its a little confusing hence my question.

              So to run down a timeline

              March 14 - bought the flat on a shared ownership basis - 50% of full value of...
              07-07-2018, 20:10 PM
            • Reply to Capital gains sale
              Your total buying cost = GBP 163K . So if you sell at 280K , then your total gain = 280K-163K = GBP 117K .

              Your total period of ownership from Mar 14 to Sept 2018 = 4 years + 6 Months = 4.5 years..

              Your period of former main residence = March 14 -April 16 + 18 Months from...
              09-07-2018, 19:48 PM
            • Reply to Capital gains sale
              Thanks for your reply
              Estimated sale price is 280,000.
              09-07-2018, 18:14 PM