14:44 PM, 19th July 2016, About 6 years ago 7
With the change in the wear and tear allowance, I am trying to work out the maximum I can spend in each rental property that I own for the 2016/2017 tax year that we are currently in. I’ve already replaced carpets and other furnishings in the properties and I’m trying to work out what the maximum spend on each property will be to get the 10% wear and tear allowance back.
From what I’ve found, the limit is 10% of net rent: “The wear and tear allowance is simply 10% of the net rents from let furnished accommodation. Net rent is the rent from the furnished properties less charges and services that are normally paid by the tenant but which are met by the landlord. Examples would be council tax, water rates etc.”
My understanding (from what I have read) of this is that my net rent will be the full amount of the rent taken in. For example, if my gross rental is £20,000 a year I have 2k to spend on the property on carpets etc.
I was concerned that net rent was the number left after £20,000 minus mortgage payments, buildings insurance etc etc. Leaving me 10% of a smaller number say for taking 10% of (to pick a number) £13,000. Leaving me only 1.3k to spend on furniture and carpets.
As I am currently changing furnishings in the properties I am concerned that I spend money now over the limit that I can’t claim back.
Does that make sense?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
Next ArticleNewly painted ceiling water leak damage?
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|