47% of landlords could lose out on tax relief
Recent changes to the annual wear and tear allowance is likely to leave 47% of UK landlords out of pocket, according to the National Landlords Association.
The allowance currently gives landlords up to 10% tax relief on all wear and tear, whether or not damage had actually incurred.
But the new rules – which were announced in the summer budget and will come into force in April 2016 – will only allow landlords to deduct the cost of replacing furniture if replacement is actually necessary.
Research by the NLA shows that 24% of landlords let their properties fully furnished, 22% choose a mixture of furnished and unfurnished and 53% only let unfurnished properties.
Items available to receive tax relief are televisions, fridges and freezers, carpets and all types of flooring, curtains, linen and all types of cutlery as well as all movable furniture.
These changes, which are under consultation until October this year will apply to income tax from 6 April and corporation tax from 1 April.
If you want any help understanding these new rules, please get in touch. We’re here to help!
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