What is classed as a furnished property?

[Orson]

I currently let a property, and provide carpets, curtains, some cupboards, wardrobes etc., but do not provide any chairs, sofas, beds etc.
I am unsure whether or not I can claim the 10% wear & tear allowance of the rental income which I understand only applies to furnished properties.
In addition, does claiming the 10% affect or invalidate any other expenses to repairs to the property. In particular, I had the roof replaced recently, which was obviously a considerable expense.

Any help will be greatly appreciated.

[Graham1]

Answers are detailed, I suggest u call Inland Revenue Order Line and ask for copy of free booklet IR150 'Rents' (check their www for tel and they may have a download but better to get booklet as about 100 pages and free.

1) 10% must include 'full' furnishings: bed, chairs etc etc, and there are Net rent restrictions etc, full details in IR150.

2) Roof replaced is a Capital expense not Revenue.

From questions u have asked it is obvious u need to read IR150: takes a day or two via post (easy to read and examples given).

Good Luck

[James Smith]

Orson,

As graham suggests you are not eligible for the 10% wear and tear allowance.

Generally speaking those claiming this allowance can still deduct most expenses, apart from those directly related to furnishings included within the allowance.

IR150 will make good bed time reading if you suffer from insomnia. If you are DIYing on your returns it is unfortunately a "must read". It is also available for download from the IR website but does run to some 150 odd pages.

Regards,

James Smith
Chartered Accountant
www.jamesesmith.co.uk
01284 764436

[Orson]

Thanks for the replies folks, I've got a copy of IR 150, and I had done a little 'speed reading' of it, just glancing a the relevant (or so I thought) parts. It was this that had prompted my question, as I'd read part of it that mentioned furniture, but not beds.
Upon a little further inspection, the phrase "If the accommodation isnÂ’t furnished, or only partly furnished, the 10 percent wear and tear allowance isnÂ’t due" jumped out at me, which answers my question.

Thanks for the help anyway though.

One tip worth mentioning, is that I've download the Adobe Acrobat version from the IR site, which allows me to search on text for specific words etc. so to find 'bed' or 'unfurnished' becomes far easier.