HMRC deduction changes for LL's?

[Willhire89]

Anyone else heard that HMRC have made changes to what you can claim as a LL?

I bought a flat and put in a new cooker and took out the storage heaters and put in new electric (fixed to the wall) ones

Accountant tells me these are both now non deductible unless the flat is let as furnished and then only on a depreciation basis

Sound right?

[TooMany2cvs]

Sounds more like the accountant is viewing them as furnishings, rather than fixtures and fittings.

[Eric Mc]

With Furnished Lettings, up until 2013, a landlord had a choice of two ways of claiming for the cost of renewing furniture, fixtures and fittings.

He could claim for the actual cost of replacing the items - called The Renewals Basis.

Or he could make a Wear and Tear Allowance claim based on 10% of the gross rental income (less rates, council tax and water charges paid by the landlord)

The "Renewals Basis" was abolished a couple of years ago and only the 10% Wear and Tear technique remains.

With unfurnished lettings, there is no furniture provided by the landlord so the landlord would never be making a claim for replacing such furniture.

The problem is that the regulations are not completely clear on what items are included in their definition of "Furniture and Fittings". Certainly tables, chairs, beds, wardrobes, mirrors, carpets, curtains etc are all included. Not so clear are kitchen worktops, cookers, fridges and other appliances.

[Willhire89]

This is let unfurnished....

To me what is required to be provided under the terms of the AST should be deductible?

[zedstar]

AFAIK the situation is that you cannot have deductions for freestanding items e.g. washing machines as the renewals allowance has been discontinued. However as you have replaced the heating system with heaters fixed to the wall I imagine this will be an allowable deduction...

[Eric Mc]

I would agree.