Thread: Inland Revenue questions on a BTL

My experience is that Sourcer is right on all these counts.  I have a section in my accounts called repairs and replacements and I throw everything in there that represents repair or replacement of fixtures and fittings including replacing a c/h boiler last year. I would also include anything like repair or replacement of a fitted kitchen appliance that was on a like for like basis.   IR have not, so far,...

If the IR are arguing that putting a boiler in constitutes a furnished property, then there must be a critical mass of properties that makes this to your advantage.   For example, new boiler £1.2K. Rental on a property £4.6K per annum. 10% wear and tear, £0.5K (round figures). Three properties and you have your offset. Ten properties and you're into serious savings.   If this an IR (sorry, HMRC) edict and applies to...

I have recently received an IR letter asking a number of questions about deductions taken against rental income as follows:   wear and tear allowance at 10% of net rental income. Do you have to fully furnish a property to obtain this.? We have carpets, curtains, lampshades, cooker, wardrobe, lawnmower and garden shed etc. The inference from the IR letter is that you have to provide crockery, linen which seems extreme to me. If we...

Hi   The general rule is that only a fully furnished property can obtain the 10% wear and tear allowance. Landlords of part furnished properties (carpets, curtains, cooker and other white goods plus curtains) have been known to get away with it in the past but may depend on a particular taxmans view on the subject.   As for the new boiler, if this was replaced because the old one failed and was irrepairable you maybe able to...