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Tax
Hints & Tips

Lymm Village

Tax Hints and Tips

Lymm Village

Free hints and tips about tax and accountancy from Lymm Tax

Landlords and Replacements

This tax tip is for landlords. In particular those who let unfurnished property and have a major item of expenditure coming up.

The rules in relation to how relief is given for replacing items such as boilers, radiators or kitchen and bathroom fittings changed from 6 April 2013. Tax relief is now only be given for repairing such items, rather than replacing them. Professional bodies such as the Institutes of Tax and Chartered Accountants are lobbying HMRC to reverse the 2013 change (which is a technical by-product of some updating and wasn’t really intended) but until the position is reversed, it would make sense to repair items rather than replace them in their entirety. For example, replace kitchen cupboard doors and worktops but retain the basic units, re-enamel your bath rather than buying a new one, or re-tile the shower and replace the screen but retain the tray and shower unit.

Those who let furnished accommodation are also affected but not so much because the tax legislation provides for landlords of furnished properties to receive a “wear and tear allowance”. This is meant to give relief for the costs of providing the extra items required in furnished accommodation but can also go some way towards compensating for the costs of integral kitchen, bathroom and heating fittings.