10 % wear and tear allowance - removed

[chorne1966]

Could anybody direct me to the legislation that has enacted this change along with clarification of what is now included.

Many thanks

Chris

[etf]

Hi Chris,

Until 5 April 2011, extra statutory concession B47 allowed taxpayers to claim a 10% wear and tear allowance (WTA). For income tax purposes, the WTA was put onto a statutory footing from 6 April 2011 by ITTOIA 2005 s308A.

Following a Revenue consultation, it was decided to replace the WTA with a relief very similar to the renewals basis that existed until 2013 as an alternative to the WTA. The new rules are implemented for income tax purposes by ITTOIA 2005 s311A.

The Replacement Domestic Items Relief (RDIR) available from 6 April 2016 is given if 4 conditions are met:

i) the taxpayer carries on a property business in relation to land which consists of or includes a dwelling house;

ii) the expenditure is incurred on the replacement of an existing domestic item in the dwelling house (which ceases to be available for use in the dwho) with a new one which is provided solely for the use of the lessee.

iii) the expenditure is capital expenditure incurred wholly and exclusively for the purposes of the business.

iv) no capital allowances must be available for the expenditure.

KR

etf

www.theexpatriatetaxfacory.com

[chorne1966]

Hi Thanks for the reply really helpful. Chris