This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Carpet replacement - allowable expenditure in BTL?

threeb
Posts: 9
Joined: Tue Nov 17, 2015 12:57 pm

Carpet replacement - allowable expenditure in BTL?

Postby threeb » Tue Nov 17, 2015 1:28 pm

Can anyone tell me if replacing carpets in a BTL property is an allowable expense? They needed to be replaced after tenant from hell damaged them by keeping a dog in the property without permission and various burn marks.

Thanks

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby section 44 » Tue Nov 17, 2015 2:39 pm

Have you reported him to the RSPCA?

vector
Posts: 39
Joined: Wed Aug 06, 2008 3:42 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby vector » Tue Nov 17, 2015 2:46 pm

Not allowable under current rules but these change in April 2016

threeb
Posts: 9
Joined: Tue Nov 17, 2015 12:57 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby threeb » Tue Nov 17, 2015 4:13 pm

Not allowable under current rules but these change in April 2016
Thanks, have you got any more information or a link?

vector
Posts: 39
Joined: Wed Aug 06, 2008 3:42 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby vector » Tue Nov 17, 2015 4:37 pm

Carpets are furnishings and therefor fall under the 10% wear and tear allowance ( even though in your case it was damage / negligence). This cost should be charged to tenant s deposit. Carpets / curtains / furniture / bedding / beds and appliances - all non deductible if you have elected the 10% wear and tear option for your accounting policy. You cannot change your policy once elected. Some fixtures you can claim for I.e. shower / built in oven ( not free standing). In the mad world of HMRC the explanation being " those items which would not be taken with you if you sold the property" or words to that affect.

threeb
Posts: 9
Joined: Tue Nov 17, 2015 12:57 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby threeb » Tue Nov 17, 2015 5:18 pm

I did make deductions from the deposit for other damage, what little was left was nowhere near enough to re carpet the whole house.

I have never claimed the wear and tear allowance, as it is an unfurnished let. Does this mean the carpet is a deductible item?

vector
Posts: 39
Joined: Wed Aug 06, 2008 3:42 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby vector » Tue Nov 17, 2015 5:48 pm

One point would be have you previously claimed 10% allowance in previous tax returns ? You have a choice to elect the wear and tear basis or replacement basis. Re as to being unfurnished, does it have curtains? To my knowledge there is no clear definition as to what constitutes "unfurnished".
If this is your first return work out which is greater 10% of your rent or replacement cost of carpet
In subsequent years you will have to follow the same po l icy.

bd6759
Posts: 3306
Joined: Sat Feb 01, 2014 3:26 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby bd6759 » Wed Nov 18, 2015 1:10 pm

One point would be have you previously claimed 10% allowance in previous tax returns ? You have a choice to elect the wear and tear basis or replacement basis. Re as to being unfurnished, does it have curtains? To my knowledge there is no clear definition as to what constitutes "unfurnished".
If this is your first return work out which is greater 10% of your rent or replacement cost of carpet
In subsequent years you will have to follow the same po l icy.
That is just wrong.

There is a clear definition of a furnished let is: "To qualify as a furnished residential letting the property has to be a dwelling house that is let with sufficient furniture, furnishings and equipment for normal residential use." (http://www.hmrc.gov.uk/manuals/pimmanual/pim3205.htm).

Since this is not a furnished letting, there is no "option" (in any event the replacement "option" for furnished lets was removed from 6 April 2013).

The new replacement furniture relief applies from 6 April 2016 to all types of let (furnished or unfurnished).

vector
Posts: 39
Joined: Wed Aug 06, 2008 3:42 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby vector » Wed Nov 18, 2015 1:13 pm

Apparently I stand corrected.

threeb
Posts: 9
Joined: Tue Nov 17, 2015 12:57 pm

Re: Carpet replacement - allowable expenditure in BTL?

Postby threeb » Wed Nov 18, 2015 2:15 pm

The new replacement furniture relief applies from 6 April 2016 to all types of let (furnished or unfurnished).
Thanks, I found this link which explains more https://www.gov.uk/government/uploads/s ... condoc.pdf


Return to “Property Taxation”