I am soon to let a property out. I know if it is furnished I can calm 10% wear & tear allowance but what if the property is part furnished i.e fridge, freezer, washing machine etc?
Related resources
Replies (6)
Please login or register to join the discussion.
Depends on how big the "part" is
White goods alone are not enough. Broadly speaking, the tenant has to be able to move in without having to provide any of the normal furniture etc required.
Thought so
I thought so but was not 100% sure. Would a new washing machine be an expense or capital expenditure then?
Renewals or Wear and Tear
You either have the renewals basis or the wear and tear basis. You can't mix and match or switch between them from year to year.
Under renewals basis, a new washing machine would be an expense. Under wear and tear it would not.
This is assuming you qualify for wear and tear in the first place. As BKD said, the tenant has to be able to move in without having to buy any furniture. It is generally accepted that at least a chair, a table and a bed would be required (something to sit on, something to eat off and something to sleep on) before a letting would qualify. If you only have white goods, as included in your OP, you are unlikely to qualify as a furnished letting.
I thought the renewals basis was being abolished? Not at my desk so can't bring up the relevant info, but I am sure there was a major change recently.
Withdrawal of the mythical concessionary renewals basis
@ Monsoon - HMRC only say they've abolished it, but since it was never a concession in the first place and has always been ststutory, they can't abolish it without changing the law.
See this thread.