Announced in the 2015 Summer Budget, the government declared changes to how UK landlords can cover the cost of repairs and replacing items in their properties. We’ve detailed how the change will affect Birmingham landlords.

On April 6th the 10% wear and tear allowance for landlords replacing furniture in rental properties are replaced with new tax relief. From this date onwards costs associated with replacing furniture becoming tax deductible.

Tax relief for furniture repairs

Previously, landlords could write off 10 per cent of their rental profits for estimated wear and tear, regardless of whether repairs had taken place at all. This is being replaced by a more widespread tax relief. The new relief is applicable to furnished, unfurnished and part-furnished rental properties. Allowing landlords of all types of property to deduct the cost of replacing furniture.

By providing tax relief on actual spend, the scheme will encourage more landlords to replace items in let properties on a more regular basis.

Timings are crucial here too; any landlord contemplating a refurbishment programme which would incur substantial expenditure to replace furniture and household appliances for their let properties may wish to postpone until after April 2016.

If done soon landlords can still claim their 10 per cent wear and tear allowance for the year to April, again even if no capital expenditure was made. But after April, the new replacement expenditure would enable the new refurbishment to qualify for tax relief in 2016-17.

When an item is improved by the landlord, for example, a sofa, under the new rules the deductible replacement expenditure will be restricted to the equivalent cost of the old item, not the full cost of the new one.

Regular interim and check-out reports can identify when furniture and other items are in need of replacement.

Interim property reports

Skribes, Birmingham’s leading independent inventory and property services specialists, provide landlords with; inventory reports, check-in reports, interim reports, check-out reports and legionella, all of which aim to minimise issues that arise when a tenant’s contract has ended.

To find out how we can help you to make it easier to manage your property, call us today on 07891551905 or email