Landlords of private rental properties in Sutton should note that HM Revenue & Customs’ have withdrawn a relief for the replacement of some white goods, furniture and soft furnishings.
Landlords can no longer claim tax relief for the replacement of free standing white goods in unfurnished residential lettings, HMRC have confirmed. This measure came into effect in April 2013 and will therefore affect rental accounts and tax returns for the 2013-14 tax year onwards.
The concession originally provided incentives for residential landlords to maintain their unfurnished properties by offering tax relief for the costs of replacing white goods and other furnishings. This incentivised landlords to replace items such as worn out furnishings and broken fridges. It is this incentive that no longer exists.
It could give rise to additional costs for private landlords and these costs may be transferred onto the tenants, thereby increasing tension between landlord and tenant over costs and maintenance.
What can be classed as a ‘replacement’ or a ‘repair’ is sometimes complex turning on fine distinctions and it is often advisable to seek professional guidance from a tax adviser. It is frustrating to see the removal of this relief for what is quite rightly seen as a legitimate business cost.
For info or advice call Martin and Co lettings and estate agents in Sutton on 020 8337 9647.