Tax relief for breaking tenants items and replacting them?

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    Tax relief for breaking tenants items and replacting them?

    Whilst undertaking some repair works to the property, some of my tenants items were damaged and in the end i had to cover the costs of these items after a legal settlement at a value of around £3,000.

    Would this £3,000 be allowable as a deduction against rents in the Tax Return?

    #2
    Surely you were insured and made a claim. Regards Peter

    Comment


      #3
      Yes a deduction would be allowed.

      Comment


        #4
        Originally posted by Telometer View Post
        Yes a deduction would be allowed.
        Are you able to confirm any HMRC guideance that says this so i have it for reference before i put in a £3k expense claim?

        Comment


          #5
          Loads of it: http://www.hmrc.gov.uk/manuals/bimmanual/bim37000.htm

          Comment


            #6
            Originally posted by Chrisl View Post
            Whilst undertaking some repair works to the property, some of my tenants items were damaged and in the end i had to cover the costs of these items after a legal settlement at a value of around £3,000.
            Out of interest, what on earth happened?

            Comment


              #7
              Erm i actually have no idea.
              I have just been asked to see if i can find out the answer for someone and dont really know the ins and outs or whether the insurance did cover it which it doesnt sound like it did.

              Comment


                #8
                I think you will need to distinguish the different items, such as repair etc will be able to claim tax deduction.

                However, some items like sofa etc, it depends on whethere you had made the 10% wear and tear claim or on renewable basis.

                Comment


                  #9
                  Originally posted by RentalTax View Post
                  However, some items like sofa etc, it depends on whethere you had made the 10% wear and tear claim or on renewable basis.
                  Absolutely not so.

                  It is completely impossible for a 10% wear and tear claim to have been made in respect of any of the assets referred to by OP.

                  Comment


                    #10
                    Originally posted by Telometer View Post
                    Absolutely not so.

                    It is completely impossible for a 10% wear and tear claim to have been made in respect of any of the assets referred to by OP.
                    The cost of repairing or maintaining furniture and fittings is allowed whether the renewable basis or the wear and tear allowance is claimed.

                    If the landlord has been claiming 10% wear and tear claim, the cost of REPLACING of the furniture would not be able to be claimed.

                    Comment


                      #11
                      Of course the generality of your statement at #8 is true. However what relevance does that have to OP? It's not very helpful to post true but irrelevant and therefore misleading information on here. Please don't.

                      Comment


                        #12
                        Originally posted by Telometer View Post
                        Yes a deduction would be allowed.
                        Well then you have agreed that your advice is flawed...

                        Comment


                          #13
                          You have no understanding, do you.

                          OP has a rental flat. During repair works some of the tenants' property was damaged. OP has to repay the tenants for this damage. A tax deduction is allowed for the payment by OP.

                          No need to complicate it by worrying about W&T/renewals basis as it's completely irrelevant for OP.

                          Comment


                            #14
                            RentalTax - I think you should rename yourself.

                            I have read about half of your 11 posts to date - most of which have missed the tax point. Either you are not trained, or are training with the best of intentions. Either way, it's best not to be so definitive when your knowledge base is weak.
                            I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

                            That also means I cannot share in any profits from any decisions made!

                            Comment


                              #15
                              Originally posted by Phlash View Post
                              RentalTax - I think you should rename yourself.

                              I have read about half of your 11 posts to date - most of which have missed the tax point. Either you are not trained, or are training with the best of intentions. Either way, it's best not to be so definitive when your knowledge base is weak.
                              Tactfully put.

                              Comment

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