Let Residential Property - Reimbursement for Damage

Let Residential Property - Reimbursement for...

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Good morning,

Where a tenant reimburses a landlord for damage they have done to a property - whether by deduction from their bond or direct payment - in respect of:

1) Items covered by the annual 10% Wear and Tear Allowance is claimed;

2) Items not covered by 1)

- which the landlord has yet to effect repairs/replacement - how are such amounts treated in the property income calculation?

The amounts are clearly not rent but items covered by the 10% WTA have already been relieved indirectly and the expense of repair/replacement has not (yet) been incurred.

Thanks for your comments in anticipation.

tladirect

Replies (4)

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By pawncob
16th Apr 2012 17:08

It's income

It doesn't matter what you call it. The W&T is to compensate for damage (slow or instant) whether reimbursed or not. You've had the tax relief, now you have to pay the additional tax.

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By tladirect
17th Apr 2012 07:43

That makes sense...

which means - where damage to non-W&T items is reimbursed - then this is not income, or is there some other way of treating this?

tladirect

 

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Replying to Steve Kesby:
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By ACDWebb
17th Apr 2012 08:31

?

tladirect wrote:

which means - where damage to non-W&T items is reimbursed - then this is not income, or is there some other way of treating this?

tladirect

 

Why not? Surely you just have income (by reimbursement) and a corresponding expense for the repair?
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By tladirect
19th Apr 2012 16:53

Hadn't looked at it that way...

but yes - I suppose so!

Many thanks all.

tladirect

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