Carpets and Curtains

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    Carpets and Curtains

    Tenant has just left property having spilt nail varnish on bedroom carpet and taken the curtains with them. I intend to take this from deposit but my question is around the tax.

    I know I can no longer set the cost of replacing these items against tax, but does that also mean I do not have to declare the money paid by the tenant to cover damage to carpet and replacement of the curtains?

    #2
    It's compensation for loss, so not taxable I would have thought.

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