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Furnished rentals

My client rents her propery out. By her own admission it is sparsely furnished, if at all furnished.....white goods only! The 10% wear and tear allowance has been claimed.

The previous agent has claimed the 10% wear and tear allowance.

PIM3200 seems pretty clear to me that the 10% isnt allowed if the proprty is ony part furnished or is furnished.

Am I missing something?

Thank you

PS if I am correct, do I need to correct previous tax returns?  We are only talking about a claim of £875 for the property, split between two people.

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You're missing nothing

My first port of call would be to ask the previous agent why they claimed the allowance (expect them to say "the client told me it was fully furnished".). If you're satisfied that the allowance isn't, and wasn't, due, then you should ask the client to agree to amend py return - and consider voluntary disclosure of errors on prior returns. The danger is that if you simply file this year's return with no claim, HMRC (if they're alert) may wonder why - leading to higher potential penalties if they look at earlier returns.

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Earlier returns

are unlikely to be looked at for that HOWEVER I think that this is where HMRC are going with their digital screening of returns so that they can identify interestign changes between one year and another

Bill

www.wamstaxltd.com

 

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