10% wear & tear

  • Filter
  • Time
  • Show
Clear All
new posts

    10% wear & tear

    I don't actually understand this part of the form. Is it just for when replacing items, such as microwave, washing machine etc? So if I have not needed to replace anything, I do not need to put a figure in?

    I assume you cannot claim for replacement windows or new bathroom floor?

    Happily I am moving back to my flat very soon as last tenant let me down last minute and I have been feeling the need to move back for a long time now as I've never been happy letting it out, but financial problems meant I had to, although I think I will look down the 'flatmate' route in future.

    When you have a fully furnished (exact definition not given) BTL then you have the option to either
    1) Offset the actual cost fo all furniture etc against income for tax purposes or
    2) Simply assume that 10% of the rent goes to replacing furniture etc as required. But then you can't offset the actual costs as well.

    The definition I use for deciding whether somewhere is adequately furniched to qualify is whether the tenant coudl get everything else they need to live there home on the bus with them. I know other landlords have slightly more sparsley furnished properties claiming 10% w&t.

    You choose forever for a property and cannot decide to use the 10% w&t allowance one year but not others.
    Different properties can be designated in different ways so some use w&t and some don't - I'd never suggest that all new furniture is assumed to be for the property where you don't claim the 10% w&t :-)
    Where there are joint owners its even possible that one uses the w&t allowance but the other uses actual costs.

    Its then an issue of what counts as furniture. One definition I like is "if I shook the house it is the things that would rattle" but then there are issues over things like - free standing fridge (furniture) v built in fridge (not furniture)



      Sort of Billy Goats.

      Your point (1) - you can offset the costs of replacing or repairing furniture carpets etc. against income.

      OP. It's a flat rate 10% of your income is non-taxable in exchange for not being able to obtain a tax deduction for the repairs. So you should have been putting a number in that box every year.

      How many years have you been letting it?

      As for the windows/bathroom floor, some dates needed:

      1. When did you start letting it
      2. When did you replace them
      3. When did you stop letting it.


        10% Wear & Tear

        I began letting in November 2009. I ceased letting in May 2011.

        First window replaced in October 2010 and second in January 2011.

        The whole 10% wear and tear is still confusing me, I do not understand the first reply at all! It is fully furnished and has a free standing fridge freezer, everything is there that you need to live there happily.

        I put nothing in this particular box for my first Tax Return, so perhaps I should not bother this time? Although anything to reduce the amount of tax to pay is good!


          Sorry my reply was garbled - let me try again.

          When you started renting the house out furnished you had a choice of ways fo dealing with the cost of replacing furniture for tax purposes. Either
          1) add up the real cost of replacing furniture
          2) assume that 10% of the rent was to cover wear and tear on furniture etc.
          This decision is for that house effectively forever. No changing your mind later. or swapping anc changing between methods.

          When it comes to the tax return, if you chose option 1) then you allow for the actual cost of replacing/repairing furniture in the box labelled something like "repairs and maintennace" and you put "0" in the 10% wear and tear box you refer to.
          If you went for option 2) then you do not include the cost of repairs/replacement of furniture in the "reapeairs and maintenance" box. Instaed you include 10% of the rent received for that proeprty in the "10% wear and tear box".

          Its bascially saying woudl you rather allow fo rthe actual cost of replacing furiniture or just assume its 10% of the rent received when working out profit for tax purposes.

          If you put nothing in this box last time and included anything for furniture etc then you effectively chose option 1 and must therefore do the same again every year.

          Hope that is a bit clearer.



          Latest Activity


          • Recovering CGT on sale of property
            by MadLL
            Hello. I am considering selling a property that used to be my own home. After taking into account all that I can, I will have a CGT liability of approximately £35,000. I have read somewhere/was told that with careful planning/investment you can effectively recover the tax paid ie max out pension contributions...
            13-01-2022, 21:48 PM
          • Reply to Recovering CGT on sale of property
            by ifallelsefails
            MadLL Whilst filling out the tax return, I noticed that you can offset trading loss against capital gains. Like all these things, it isn't straightforward - here is a guide: https://www.taxinsider.co.uk/trading...pital-gains-ta
            25-01-2022, 20:18 PM
          • Letting agency didn't pay my council tax
            by kasin22
            Hello all,

            I rented a studio apartment through a letting agency in Newcastle from December 2020 until July 2021. My council tax was supposed to be included in the rent and paid by the agency. This was confirmed over the phone before signing the tenancy agreement and in writing in the agreement...
            25-01-2022, 19:39 PM
          • Recent tax return
            by Ailers
            Hi, new here, sorry if this has been asked already but I can't find the answer.

            I have just completed my tax return for 2020/21 as a landlord with a few properties. My income was 22k and my outgoings (maintainance, ground rent, insurance, mortgage payments etc) was 18k. The mortgages are...
            24-01-2022, 22:42 PM
          • Reply to Recent tax return
            by jpkeates
            I suspect that you completed the return incorrectly.
            25-01-2022, 09:30 AM
          • Reply to 50/50 ownership versus rental split
            by AndrewDod
            Yes (if you are spouses)
            Probably wise to use a lawyer
            CGT not relevant as you can freely transfer between spouses for CGT purposes (even shortly before a sale)...
            25-01-2022, 08:52 AM
          • 50/50 ownership versus rental split
            by Deeks67
            Hi guys , I have recieved some inaccuratre advice ( not from this site ) RE ownership and rental income split . my wife and I have 2 unemcumbered properties which are renting out , the first started renting in Oct 2020 and the second started in July 2021 . Both properties are in joint names 50/50 (...
            25-01-2022, 06:24 AM
          • Tax return
            by pchaure
            New to this, buy to let property got in 2018 but renewing took time and COVID hit. Rented out since Dec 2020. I had Electrical work done completed in 2019, as had no income I had not filled in self assessment. Can I claim it in this tax year?
            24-01-2022, 19:05 PM
          • Reply to Tax return
            by jpkeates
            If it was first let in December 2020, the costs allowable against income prior to that take place on the first day of the first tenancy for tax purposes.

            So, if you mean can you claim it on a tax return for April 2020 to April 2021, the answer is yes.
            You can't claim it for this tax...
            24-01-2022, 21:10 PM
          • Advice
            by jhoggard

            I currently have a property rented out in my own name with a fair bit of equity around 50% LTV this is actually a repayment mortgage which i'm looking to switchover to a interest only. When i do this i'm also taking money out of the property to put towards another which i'm looking...
            20-01-2022, 14:25 PM