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10% Wear and Tear allowance

withdraw of the 10% wear and tear allowance

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Hi, I think I know the answer to this but would welcome confirmation I am right.  My client co owns an number of furnished rental properties and another accountacy firm prepares the property accounts which I then use when completing my clients tax return.  For 2016/17 I was not expecting the accountant to continue to deduct the 10% allowance and was supprised to see it in the 2016/17 accounts.  Please can you confirm i am right this is nolonger allowable and they should include actual costs for replacing furnishings, I just would like a second opinion before challenging the other accountant.  Thanks



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Euan's picture
By Euan MacLennan
03rd Nov 2017 18:25

Yes - you are right

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By Accountant A
03rd Nov 2017 20:35

Just a heads up. Google's free all weekend.

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By Tim Vane
03rd Nov 2017 20:44

Why would you challenge the other accountant? What does it have to do with them?

Your question states that you are responsible for completing the tax return and the other accountant is responsible only for the property accounts. Surely therefore you will always have been making adjustments to the accounts as part of your tax preparation such as excluding disallowable expenditure, adjusting for capital allowances, calculating wear and tear (in earlier years), adding back mortgage interest etc.

Or have you just been plugging in the other accountant's accounts figures into the return and hoping for the best? If you are putting your name to the return then you should surely not be slapping somebody else's figures into it. Something doesn't add up here.

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Replying to Tim Vane:
By Tim969
03rd Nov 2017 22:03

Thanks for your reply, not sure why you would think I should not challenge an incorrect set of figures, the other accountant is preparing them for all the partners owning the properties to enable them to complete their tax returns if completed properly no adjustments would be necessary, I am only acting for one of the owners and would be negligent not to point out the error. I would have thought it was apparent I am not just plugging in the figures since I am querying them, not sure what does not add up here?

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