Help with HMRC changes to Renewals

Help with HMRC changes to Renewals

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Hi

I am querying mainy in connection with the new HMRC rules regarding abolition of the renewals basis.  It seems easier to understand when it relates to letting of property because they can't claim capital allowances anyway.

I seem to understand the basics now are that fully furnished properties will only be able to claim the 10% wear and tear allowance and also repairs to items in the property but not replacement of items in the property (as this is covered by the wear and tear allowance).

I also understand that landlords with unfurnished residential lettings will lose out as they can't claim wear and tear, so they will only be able to claim repairs to items in the property but not the cost of replacements.

Am I right in thinking that items which aren't normally moveable between properties, such as replacement sinks and toilets which are fixed into the property can be claimed as repairs in both furnished and unfurnished lettings? ie. a wash basin gets cracked and can't be repaired so they have to fit a new one in. (and can this be claimed in addition to the wear and tear allowance?)
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So, presumably the same rules apply to all self employed traders, I'm thinking for example hairdressers with a salon, nursing homes, hotels etc.

I read one rule that states:
 

The tax legislation provides for a deduction for the cost of renewing “trade tools” (see section 68 ITTOIA2005). The legislation is considered to refer only to small items such as hammers, chisels and so on, but by concession the relief has been extended to any items of plant and machinery.

so presumably a self employed joiner who buys a new cordless drill to replace a worn out one, would be able to claim this as a renewals deduction to their profit and loss account and the same would apply to all hand tools and small power tools that were replaced?

However, what about a nursing home that decides to replace a worn out lounge carpet - how would that be treated? Under the new rules it would seem that you can't treat that as a renewal, so how would it be treated? Could you claim it as plant and machinery or is it a property improvement that would need to be added on to the cost of the property?
 

In the example of a hairdresser replacing the salon chairs with more modern ones - is this also a capital expense or could these be classed as tools of the trade and charged to the profit and loss account as a renewal cost? However, I am thinking that it may only apply if it were items such as broken hairdriers or worn out towels being replaced?

Any input would be appreciated as it seems so difficult to find a clear cut answer to basic questions on the net. 

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