Is furniture tax deductible on new purchase of property?

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  • Is furniture tax deductible on new purchase of property?

    Is furniture (such as sofas, dining table and bed) a tax deductible cost on the purchase of of a new property which is going to be let fully furnished. Are light fittings classed as furniture?

    If furniture is tax deductible, is it an annual expense or a capital expense?

  • #2
    My understanding is that with furnished property you can either claim the 10% wear and tear allowance or the cost of replacements. So not the initial cost in either case. I've always opted for the 10% but there may be circumstances where the replacement basis is more beneficial. An example could be where you buy a fairly dated furnished property and find that it doesn't let well so decide to upgrade the furnishings to improve the return.

    http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm

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    • #3
      Thanks for the information. Very helpful. If I were to flip the property, would I be able to declare brand new furniture as a capital expense?

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      • #4
        Originally posted by nantes View Post
        Thanks for the information. Very helpful. If I were to flip the property, would I be able to declare brand new furniture as a capital expense?
        It would be an income expense, as your flip profits would be taxed as income and not as a gain.
        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!

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        • #5
          What does flipping a property mean, please?
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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          • #6
            http://sarahsuperbreak.files.wordpre...down-house.jpg

            Have you not seen one of these before?

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            • #7
              Looks like a flippant reply to me.
              I also post as Mars_Mug when not moderating

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              • #8
                Originally posted by mind the gap View Post
                What does flipping a property mean, please?
                "Flipping" a house consists of buying a run-down property below market price, increasing its value somehow, and rapidly re-selling it for a quick profit.

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                • #9
                  Thank you Mrs Mug!
                  'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                  • #10
                    Originally posted by Dan_Manchester View Post
                    http://sarahsuperbreak.files.wordpre...down-house.jpg

                    Have you not seen one of these before?
                    Seen one?I feel as though I live in one, most of the time!
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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