Wear and Tear

HMRC have recently published detail of the final legislation that will enact the removal of the wear and tear allowance on furnished buy-to-lets and the ‘reintroduction’ of a ‘renewals’ basis of relief for capital items put into any dwelling by a landlord from 6th April 2016.

Landlords of furnished property should reassess their tax position without the 10% wear and tear allowance from 2016/17.

All landlords should defer capital expenditure (where possible) to after 5th April 2016.