Question:
I rent out a house which has carpets, curtains, a washing machine and fridge. Is the cost of replacing these tax deductible?
Arthur Weller replies:
Currently, the short answer to that question is no. The Government withdrew the 'renewals basis' capital allowance for furnishings in a rental property from April 2013 www.hmrc.gov.uk/manuals/pimmanual/PIM3230.htm. So currently, only the 10% wear and tear allowance for a fully furnished rental property is available. However, the Government announced in the summer 2015 Budget that, as from April 2016, the 10% allowance will stop, and instead there will be a new 'replacement allowance'.
