I understood that 10% wear and tear on profit is income less costs i.e. all costs relating to the property (Mortgage Interest, Management costs, repairs etc) is this correct or is it just Water, Rates etc. see below.
Found this on HMRC website
The wear and tear allowance is calculated by taking 10% of the net rent received for the furnished residential accommodation. To find the ‘net rent’ you deduct charges and services that would normally be borne by a tenant but are, in fact, borne by the taxpayer (for example, council tax, water and sewerage rates etc).