From 6 April 2016 property landlords will no longer be able to claim the wear and tear allowance in calculating their taxable profits from the rental of furnished rental accommodation. The allowance, calculated as (broadly) 10% of rental income, will be replaced by a new statutory relief for the costs of replacing furniture, furnishings, appliances (including white goods) and kitchenware.
As a result of these changes, deferring any imminent purchases of any such items for just two weeks could prove tax efficient.
If you wish to discuss this or would like wider advice with regard to your property portfolio, including the impact of the forthcoming changes to tax relief for finance costs, then please contact David Buck, Senior Tax Manager on 01788 539000.