I have a client with about thirty properties for rental. Over the last few years the tendency has been for more of the properties to be let on a partially furnished or totally unfurnished basis rather than a furnished basis. The revenue say that cannot chop and change the basis for claims. It seems inappropriate to continue to claim the wear and tear allowance as we have in the past but can we change the basis given that the basis of the letting has changes and can you change the basis every time the terms of the lease change.
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Logic says
That a move from furnished to unfurnished is akin to changing your motor car (as in, choose mileage rate or apportionment of costs basis) and indeed puts you in a position to change how expenses are claimed.
Quite logically one cannot continue to claim 10% wear and tear allowance on an unfurnished property and i am sure HMRC would have words to say with anyone who did.
But then, when have the specifics of tax law ever been logical?