Renewals Basis and Unfurnished Rental Properties


From  6 April 2013 HMRC removed the renewals allowance for landlords of unfurnished rental properties, prior to this landlords could claim 100% tax relief by claiming the so called  ‘renewals allowance’ for the cost of replacing furniture.

As a result of the change landlords are unable to claim a deduction for the costs of replacing furniture; this includes free standing cookers, fridges carpets, curtains etc.

They can still claim for the costs of repairing and maintaining the furniture and fittings in the rental property.

HMRC accept that the replacement of integrated white goods  and where replacing less than 50% of equipment such as air conditioning, boilers and water heaters is being replaced  as being a repair to the property itself.

The removal of the ‘renewals allowance’ only affects unfurnished properties;  furnished properties can continue to claim wear and tear allowance;  landlords of Furnished Holiday Lets can continue to claim capital allowances on the cost of replacing furniture and fittings to the property.

For further information on this contact the team at Castletons Accountants on 01625 524127.

Castletons Accountants

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