Can I transition from Renewable Allowances to Wear and Tear form 6-April-2013?

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    Can I transition from Renewable Allowances to Wear and Tear form 6-April-2013?

    Hi Guys,

    First of all Merry Christmas!

    This is first post on this form so please bear with me if I ask a very naive question

    I've been renting a furnished property on Renewable Allowances basis for about 3 years. As I understand Renewable Allowances has been Abolished For Residential Landlords from 6-April-2013. My query is that can I transition from Renewable Allowances to Wear and Tear form 6-April-2013?

    Thanks in advace.

    Regards,
    Garry

    #2
    Wear and Tear allowance is permitted only for a fully furnished property.

    Comment


      #3
      This hmrc guide may help to explain what is covered under "furnished property" :

      http://www.hmrc.gov.uk/manuals/pimmanual/pim3200.htm

      Are you preparing your tax return for 2012/2013 before 31 Jan 2014 ?

      Comment


        #4
        Sad S,

        Thanks for your reply. Yes, it is fully furnished. Does anyone know if landlords will be given a chance to trasit to Wear & Tear from FY2013-14?

        Comment


          #5
          Gordon999,

          Thanks for your reply and the link. Yes, I'm preparing my tax return for 2012/2013 before 31 Jan 2014. I was thinking if landlords will be given a chance to trasit to Wear & Tear for FY2013-14 return? Please note Iet my property furnished.

          Comment


            #6
            The short answer is Yes - according to HMRC - W&T for 2013-14 et seq is claimable, as the renewals basis "concession" has been abolished.

            However, IMHO, there is an arguable case that renewals basis is still available for landlords via section 68 ITTOIA 2005 (which is extended to property rental businesses by section 272 ITTOIA 2005).

            Comment


              #7
              You can add a note in your tax return to say " Claiming 10% W&T due to change of hmrc rules to abolish renewals cost allowance."

              Comment


                #8
                Thanks all for your valuable inputs.

                Comment

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