End of wear and tear allowance for 2016 - 17

Landlords of furnished residential properties could previously deduct 10% of net rent from their profits to cover ‘wear and tear’ on their properties. The deduction could be applied whether they replace any furnishings, fixtures and fittings or repair the property or not.

This changed in April 2016. Landlords are now only able to claim tax relief when they purchase furniture for their rental property.

The new scheme permits landlords to deduct the actual costs of replacing:
• furniture
• furnishings
• kitchenware

One of the benefits of the new rules will be that calculating and determining expenses is easier for landlords. They will not have to work out whether their property is furnished enough or whether something is a fixture in order to claim the 10% relief. Landlords with a portfolio including furnished, unfurnished and part-furnished property will also be able to deduct expenses.

There are a number of allowable expenses that landlords can legitimately claim. It is always worth reviewing your situation with an expert in this field as the rules are frequently changing. If you would like to speak to one of our property taxation specialist, please call us on 0330 024 3200.

For more information on other areas of property taxation see the following pages:

Get in touch today

​London office

45 Pall Mall

T +44 (0)20 7930 7797
F +44 (0)330 024 3300

Watford office

Radius House
51 Clarendon Road
Herts WD17 1HP

T +44 (0)1923 232938
F +44 (0)330 024 3300

Milton Keynes office

249 Silbury Boulevard
Milton Keynes

T + 44 (0)1908 232020
F + 44 (0)330 024 3300

  • logo-02
  • ICAEW_CharteredAccountants_BLK_RGB1
  • logo-05
  • logo-06

Hillier Hopkins is a trading name of Hillier Hopkins LLP, which is registered as a Limited Liability Partnership in England & Wales, No. OC303707. Registered Office: Radius House, 51 Clarendon Road, Watford, Herts WD17 1HP. Registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England & Wales. A list of members of the LLP is available at the above address. HH and Hi logos are trade marks belonging to Hillier Hopkins LLP. © Hillier Hopkins LLP.