This report is prepared by Together We Count for the intended purpose of use in meeting and educating their clients. It should not be reproduced, telecasted, distributed, circulated or used in any commercial frameworks without their permission. The facts presented within stand true and correct at the date of publishing. We shall not bear the responsibility of liabilities arising of your actions should you act in isolation independently placing reliance on these reports, in isolation to our professional advice. Please ring Together We Count for further advice.

 Property business constitutes earnings arising from the following activities:

  1. Renting a property within the UK
  2. Renting a room in your Principal Private Residence
  3. Renting out a Furnished Holiday Home within the EEA (pre-Brexit)

 Renting a property within the UK

 Principal Private Residence Relief

The taxpayer’s home is their principal private residence (PPR). This is exempt on disposal provided it was occupied by the taxpayer throughout the period of occupation or qualifies for deemed occupation, for capital gains tax purposes. For spouse / civil partners, the couple can only have one PPR in spite of being two separate taxpayers.

For taxpayers owning more than one home, they must select which one should be treated as their PPR within 2 years of the acquisition of the second home to HMRC. Failure in doing so results in HMRC making the election at the time of disposal on one of those properties. TWC can assist with this.

 Capital Gains Tax

A taxpayer’s PPR is a specifically exempt asset from capital gains tax implications. If you dispose of:-

  • a dwelling house (which can include a house, flat, houseboat or fixed caravan) which is your home
  • part of a dwelling house which is your home
  • part of the garden attached to your home

One would normally have to pay Capital Gains Tax (CGT) on any gain. However, you’ll be entitled to full relief where all the following conditions are met:

  • the dwelling-house has been your only or main residence throughout your period of ownership
  • you haven’t been absent, other than for an allowed period of absence or because you’ve been living in job-related accommodation, during your period of ownership
  • the garden or grounds including the buildings on them aren’t greater than the permitted area
  • no part of your home has been used exclusively for business purposes during your period of ownership

Even if you meet all of these conditions, you won’t get Private Residence Relief if:

  • you dispose of all or part of your garden after you’ve disposed of your home
  • you acquire a dwelling house and/or spend money on it in order to realize a gain on its disposal

For example, you may have bought the house to sell it quickly at a profit or, if you were a tenant, you may have bought out the freehold in order to increase your profit on sale. In this case, you’ll need to provide details on your tax return.

If you’ve made a loss on the disposal instead of a gain:

If you make a loss on the disposal of your home and you would have received Private Residence Relief if you had made a gain, your loss won’t be an allowable loss and you won’t be able to offset it against any other gains you’ve made which are taxed under Capital Gains Tax. If you would have received partial relief, part of your loss won’t be allowable and that part should be calculated in the same way as you would have calculated the partial relief if you had made a gain.



Income arising from a property business run by an individual or by a number of individuals forming a partnership falls under taxable income assessable under the personal tax regime. Tax liability calculation and due payments are submitted to HMRC by 31st January each year for the previous tax year as per the self-assessment filing using the SA100 form.  (See tax table in annex.)

Personal tax for each resident taxpayer in the UK is calculated, starting from 6th of April this year, until the 5th of April the following year. Each individual has to file their self-assessment return to HMRC and pay their due taxes by 31st January the following year after the end of the tax year.

For example, if Billy rents his property from 1st April 2018 to 31st March 2019, he must declare to HMRC the tax due on rents he received for that duration on his self-assessment tax return for the tax year 2018-19. This submission and payment is due to be paid online by the deadline – 31st January 2020, and 31st July 2020, if a payment on account is due.



Certain expenses incurred wholly, necessarily and exclusively in relation to running the property business are deductible to arise at net profits from this source of income. If more than one property is let by the same taxable person during the year, the figures are aggregated and presented as a whole, deducting all expenses from all income to arrive at the net figure.

(Allowable expenses are detailed in the annex.)



If a loss is incurred via this source of income, it can be carried forward and deducted against future profits. However, as an exception, losses arising from furnished holiday letting may only be carried forward and deducted against future profits from the same FHL.


Spouse / Civil Partners

When spouse or civil-partners jointly own a property, income arising on this is distributed equally between both unless otherwise agreed via a written agreement declared to HMRC. This split up figure is considered as the individual income of both individuals in consideration of their SA100 submissions.

In a real-life scenario, a couple, where one is a higher-rate taxpayer and the other is a lower rate taxpayer/unemployed, they elect to utilize this provision to distribute this income between the two by declaring to HMRC that the low-earning/unemployed partner is entitled to 100% earnings arising from the property they jointly own. In this situation, as the employed partner is a higher rate taxpayer, this above strategy helps avoid the higher rate tax implications.


Property income finance cost

Tax relief for finance costs in respect of residential property, such as mortgage interest, is to be restricted to the basic rate. However, this restriction is being phased in over four years, and for the tax year 2017–18 only 25% of finance costs are subject to the basic rate restriction. The restriction has no impact on basic rate taxpayers.

It makes no difference whether the finance was used to purchase the property or was used to pay for repairs.

The restriction does not apply where finance costs relate to a furnished holiday letting or to non-residential property such as an office or warehouse. The restriction only applies to individuals and not to limited companies.

You’ll be affected if you’re a:

  • UK resident individual that lets residential properties in the UK or overseas
  • non-UK resident individual that lets residential properties in the UK
  • individual who let such properties in partnership
  • trustee or beneficiary of trusts liable for Income Tax on the property profits

You won’t be affected by the introduction of the finance cost restriction if you’re a:

  • UK resident company
  • non-UK resident companies
  • landlord of Furnished Holiday Lettings

 Most impacted:

  • Existing higher rate tax payers (40% and 45%)
  • Landlords with marginal rental cover (high mortgage costs relative to rental income)
  • Tax payers moving into the higher rate tax band as a result of the changes
  • Landlords with strong rental cover

Phasing in the restriction

The restriction will be phased in gradually from 6 April 2017 and will be fully in place from 6 April 2020.

You’ll be able to use some of your finance costs to work out your property profits and use your remaining finance costs to work out your basic rate tax deduction:

Tax year Percentage of finance costs deductible from rental income Percentage of basic rate tax reduction
2017 to 2018 75% 25%
2018 to 2019 50% 50%
2019 to 2020 25% 75%
2020 to 2021 0% 100%


Examples – How client’s profitability could be affected


Scenario 1: No change to tax band (single property landlord)


20% tax payer PAYE Income: £15,000 40% tax payer PAYE Income: £50,000
Previous position (16/17) Previous position (16/17)
Rental Income £10,000 Rental Income £10,000
Mortgage Interest £4,000 Mortgage Interest £4,000
Other Allowable Costs £2,000 Other Allowable Costs £2,000
Taxable Income £4,000 Taxable Income £4,000
Tax @ 20% due on Rental Income £800 Tax @ 40% due on Rental Income £1,600
BTL Profit £3,200 BTL Profit £2,400
Future position (20/21) Future position (20/21)
Rental Income £10,000 Rental Income £10,000
Allowable Costs £2,000 Allowable Costs £2,000
Taxable Income £8,000 Taxable Income £8,000
Mortgage interest relief (20% of mortgage interest of £4,000) £800 Mortgage interest relief (20% of mortgage interest of £4,000) £800
Tax due on Rental Income £800 Tax due on Rental Income £2,400
BTL Profit £3,200 BTL Profit £1,600

Scenario 2: Portfolio landlord


Scenario 3: Rental cover

20% moving to 40% tax payer Portfolio size: 6 PAYE Income: £15,000 40% tax payer; high mortgage costs Higher interest rate
Previous position (16/17) Previous position (16/17)
Rental Income £60,000 Rental Income £10,000
Mortgage Interest £24,000 Mortgage Interest £5,500
Allowable Costs £12,000 Allowable Costs £2,000
Taxable Income £24,000 Taxable Income £2,500
Tax @ 20% due on Rental Income £4,800 Tax @ 40% due on Rental Income £1,000
BTL Profit £19,200 BTL Profit £1,500
Future position (20/21) Future position (20/21)
Rental Income £60,000 Rental Income £10,000
Allowable Costs £12,000 Allowable Costs £2,000
Taxable Income £48,000 Taxable Income £8,000
Gross Tax @ 20% & 40% due £13,200 Gross Tax @ 40% due £3,200
Mortgage interest relief (20% of mortgage interest of £24,000) £4,800 Mortgage interest relief (20% of mortgage interest of £5,500) £1,100
Tax due on Rental Income £8,400 Tax due on Rental Income £2,100
BTL Profit £15,600 BTL Profit £400


Renting out a Furnished Holiday Lets (FHL) within the EEA


FHL is a property in the EEA that is let on a commercial basis on the following criteria:-

  • Available to be commercially let for at least 210 days a year
  • Actually commercially let for 105 days a year
  • Longer-term lettings do not exceed 155 days in a year. A longer term letting is a single letting to the same person of more than 31 consecutive days


There are specific tax advantages available from FHL. Cost of fixtures and equipment attract the more favorable plant and machinery capital allowance rather than the wear-and-tear allowance, now known as replacement relief.


Losses incurred on FHL are carried forward to be set off against future profits arising from FHL only. They cannot be set off against income from other sources.



FHL is a business asset for CGT purposes attracting rollover relief, holdover for gifts and the entrepreneurs’ relief rate of tax.



Value added tax will not often be relevant to an FHL, as the income derived therefrom would normally be below the VAT registration threshold. However, if the owner is already personally registered for VAT, then VAT must be charged on rents received from the properties, since the letting of an FHL is regarded as a standard-rated business activity for VAT purposes.

For Example:-

Joy lets out a furnished holiday cottage in Devon. In 2017/18 the property was available for letting for 250 days and was actually let for 120 days. In 2018/19 the property was available for 220 days but was only actually let for 95 days. Hence, it only qualifies in the year 2017/18 as a FHL. In the other year it would be treated as normal rental property income.

In fact, any property which is not treated as a FHL due to reasons such as above or any other, must have the accrued income for the year from that property included as part of that resident taxpayer’s property business income for that tax year.

Renting a room in your principal private residence (PPR)


When a UK resident taxpayer rents one or more rooms in their principal private residence, it gives rise to income assessable under UK property business income. The tax exemption is automatic if you earn less than the threshold. This means you don’t need to do anything. However, one must complete a tax return if earnings are more than the threshold. From 6 April 2016 to 6 April 2019, this is £7,500. For the 2015 to 2016 tax year, the threshold was £4,250.

Tax-free income

The first £7500 of rent received from letting a room or rooms in a main residence is tax free

Declaring to HMRC

The rent-a-room election must be made by 31st January within two years of the end of the tax year (e.g. 31st January 2020 for tax year 2017/18)

Some Tax Saving Tips

Benefits of buying through a limited company

There are a couple of financial reasons why you might choose to own property as a company rather than an individual.

Firstly, the way you are taxed on the rental income will differ slightly. If you own a property as an individual, the money you get from rent will be taxed as income tax, alongside your other earnings.

But, if you choose to invest a property in your limited company, the profit you make will be liable to Corporation Tax instead, which is currently 20% for profits totaling £300,000 or less ( ).  That being said, it could make a huge difference to the amount of tax you pay, if you pay income tax at 40% or higher.

Rental profits taken as salary or dividends will be taxable income taken from your band. However, there are ways you can take your dividends to maximise tax efficiency, or you can leave them within the company to use on your next investment property.


Income tax relief on buy to let mortgage interest is being restricted but is it more tax efficient and financially better all round to operate your portfolio using a limited company? Buy to let expert Aaron McLeish compares the options.

The tax year 2016/17 was the last year that higher and additional rate income taxpaying landlords could claim full relief on the costs incurred when taking on finance (i.e. a buy to let mortgage).

If you’re a residential landlord, you probably know, the main finance cost is the interest you pay on the buy to let mortgage but it may also include interest on loans to buy furnishings and any fees incurred when taking on these mortgages and loans, such as:

  • Lender arrangement fees
  • Broker fees
  • Lender’s valuation of the property
  • Legal fees related to the mortgage but possibly not to the general conveyancing of the property.

As usual, the information on is typically vague about what is regarded as finance costs, so please do make sure you ask Together We Count Limited or your tax office for clarification.

From 6 April 2020, if you are a residential landlord and you own your rental property personally, you will not be able to deduct the finance costs from your property income when calculating your taxable profit. Instead, you will receive a basic rate reduction on the finance costs from your income tax liability.

Because this is such a game-changer for landlords, the new regime is being phased in over four years on the following basis:

  • Tax year 2017/18: You can deduct 75% of your finance costs from property income. The remaining 25% can be claimed as a basic rate reduction from your income tax liability.

  • Tax year 2018/19: You can deduct 50% of your finance costs from property income. The remaining 50% can be claimed as a basic rate reduction from your income tax liability.

  • Tax year 2019/20: You can deduct 25% of your finance costs from property income. The remaining 75% can be claimed as a basic rate reduction from your income tax liability.

  • Tax year 2020/21: All financing costs you incur can be claimed as a basic rate reduction from your income tax liability.

According to the explanation on, the policy objective of this tax change is “to make the tax system fairer,” although it doesn’t say fairer to whom! And the wording of how the new tax calculation applies is not easy to understand. It’s certainly not fairer to landlords.

In addition to the example above please see below:

A basic before and after example for a higher rate (40%) taxpaying landlord who personally owns a property valued at £300,000 with a buy to let mortgage of £225,000 (75% LTV), receiving rent of £1,250 pcm:

BEFORE (up to tax year 2016/17): AFTER (from tax year 2020/21):
Rental income:

£15,000 pa

Rental income which is now the taxable profit:

£15,000 pa

Assuming average mortgage interest rate 
of 3.49%:

£7,852.50 pa

Assuming average mortgage interest rate
of 3.49%:

£7,852.50 pa

Taxable profit calculation:

£15,000 – £7.852.50 = £7,174.50

Taxable profit calculation:

£15,000 x 40% = £6,000

  Mortgage interest relief at basic tax rate:

20% x £7,852.50 = £1,570.50


Tax due (at the landlord’s highest margin rate as a higher rate taxpayer):

£7,147.50 x 40% = £2,859

Tax due:

£6,000 – £1,570.50 = £4,429.50


Net profit calculation:

£7,147.50 – £2,859 = £4,288.50

Net profit calculation:

£15,000 – £7852.50 – £4,429.50 = £2,718

Inflation aside, that’s a 37% reduction in profit!!

What can you do to mitigate the situation?

Simplistic answers are the obvious “find a cheaper buy to let mortgage rate” or “increase the rent you charge” but these aren’t always realistic or possible solutions.

You may have heard that many landlords have discovered that owning their rental properties in a limited company is a more tax-efficient option because they pay Corporation Tax not Income Tax and so the relief restrictions don’t apply. By the way, the main rate of Corporation Tax is currently 19% (tax year 2018/19). In the tax year 2020/21 it will be 17%. But the rental properties will be subject to tax at the Special rate for unit trusts and open-ended investments companies – being 20%.

But is it a better option? Let’s see how the higher tax rate paying landlord in the example above might fair if he owned the property in a limited company.

BEFORE (up to tax year 2016/17): AFTER (from tax year 2020/21):
Rental income:

£15,000 pa


Rental income:

£15,000 pa


Assuming average mortgage interest rate
of 3.49%:

£7,852.50 pa


Assuming average mortgage interest rate 
of 3.49%:

£7,852.50 pa


Taxable profit calculation:

£15,000 – £7.852.50 = £7,174.50


Taxable profit calculation:

£15,000 – £7.852.50 = £7,174.50


Corporation tax due (20%):

£7,147.50 x 20% = £1,429.50


Corporation tax due: (17%)

£7,147.50 x 17% = £1,215.08


Net profit calculation:

£7,147.50 – £1,429.50 = £5,718


Net profit calculation:

£7,147.50 – £1,215.08 = £5,935.42


On the face of it, this is a much better fiscal and financial scenario both before and after, Together We Count Limited advise to look at the longer term savings, being 5, 10, 20, 30 years when considering moving properties to a limited company.

BEFORE: In tax year 2016/17, the landlord makes £1,429.50 more net profit than if he were paying income tax.

AFTER: In tax year 2020/21, the landlord makes £3,217.42 more net profit than if he were paying income tax.

BASIC RATE TAX PAYING LANDLORDS BEWARE! The example here relates to a higher rate income taxpaying landlord. Additional rate income taxpaying landlords could find themselves even worse off. Perhaps, more importantly, don’t dismiss this article if you are a basic rate taxpaying landlord; you might find that because the tax is calculated differently, the taxable income calculation could tip you into the next tax bracket.

Why not transfer all the properties you already own into a limited company?

Transferring is not a legal option; the properties must be sold at the market value which means some or all of the following additional costs:

  1. Stamp Duty Land Tax at the higher rate will be payable on the purchase by the limited company, even it is your first property purchase by the company.

  2. Capital Gains Tax owed by you personally when you sell the property

  3. Early Repayment Charges (ERCs) if you are still tied into your existing buy to let mortgage.

  4. Finance costs incurred by the limited company when taking out a new buy to let mortgage.

It’s worth reiterating that everybody’s circumstances are unique, so do seek advice from Together We Count Limited to find out if incorporating your portfolio is the best strategy for you.

If you find that incorporation is the way forward for you, please do get in touch to talk through rates and options available to your specific needs.

Should you make new purchases in a limited company?

Together We Count Limited are able to tell you if it makes sense for you to make all new purchases of buy to let property through a limited company. If it is, here are a few pointers to bear in mind.

Choice of lenders and mortgages for limited companies:
Contrary to popular belief, there is quite a bit of choice. In Q4 2018 according to the Buy to Let Mortgage Index, 22 out of the 41 active buy to let lenders were, between them, offering 718 buy to let mortgage products to limited companies. That’s around 36% of all products.

If your broker has told you otherwise, it could be that they have no experience of these transactions and so are unaware of which lenders to approach. They may also be unable to access these lenders directly.

At Mortgages for Business, their landlord clients are increasingly choosing to make purchases of additional buy to let property using an SPV Limited (Special Purpose Vehicle) company such that, in Q4 2018, 55% of all newly submitted BTL mortgage applications were made in this way.

Are buy to let mortgage rates higher for limited companies?
Yes and no! The very cheapest buy to let rates available in the market are generally not available to limited companies. HOWEVER, where a lender does accept limited companies, most are offering the same rates to both individuals and limited companies.

Is it complicated to set up a Limited Company?
Together We Count Limited can assist in setting up a limited company. There are many different matters which need to be considered when setting up a limited company, such as – is it suitable, ownership structure, family, registered office, remuneration, legal issues, exit strategy, banking, accounting records, tax the list goes on. So simply buying and registering a cheap company online can be detrimental if you do not seek professional advise from Together We Count Limited.

Setting up a SPV Ltd Co

Can a newly established company get a buy to let mortgage?
Yes! A new company is not a problem as long as you are prepared to provide a personal guarantee for the loan.

Will the lender take a fixed and floating charge or debenture over the company?
Yes and no! That’s where a good broker can help! Generally speaking these aren’t required on SPV limited companies but they may be if you buy the property using a trading business rather than an SPV.

Will you need to earn a minimum annual income?
Yes and no! Some lenders want you to see proof of income over £25k per annum. This can be salary, dividends, property income or combination of all of them. Different lenders will accept different income amounts and sources so all circumstances can be accommodated – usually!  New companies won’t have any trading history or income so lenders will base their underwriting against your personal income.

Will I need to be an experienced landlord to borrow via a limited company?
If you want to jump straight into the HMO (House of multiple occupation) market without experience of being a landlord, your borrowing options will be restricted. The same goes for other, more complex properties like blocks of flats (often referred to a multi-unit freehold blocks), mixed used and commercial premises. It is not impossible to find a lender but your application will need to be stronger in other areas to compensate this.

Deposit – including directors’ loans, inter-company loans, gifted deposits, etc.
This is an area which it gets a little complicated as to what is acceptable or not but the fundamentals are, as long as you can provide evidence of the source of the funds, and they are legitimate then lenders will be sensible. A common misconception is that you cannot raise money from one property to form the deposit for a BTL.

Wrong! This is actually one of the most common ways of a raising a deposit, often against your home or on another BTL property. Evidence of the source of funds can very easily be provided, usually with bank statements showing the deposit from another lender.

Are lenders’ borrowing criteria more restricted for limited companies?

Not really but they will be inquisitive about:

  • The total number of properties you own – both personally and in a limited company structure
  • The number of directors on the application – usually there is a maximum of four
  • How many shareholders the company has – sometimes people like to add children as shareholders which some lenders don’t like

Regardless applying personally or via a limited company, lenders will be inquisitive about your credit history, the property type, the location and the loan to value.

How individuals renting their property on Airbnb are taxed?

The amount of tax you pay on income from Airbnb will depend on how much you earn and what you’re renting out. If you’re renting out a room within your property, you can take advantage of the Rent-a-Room scheme. This allows you to earn up to £7,500 from letting out a room in your property without paying tax on it. Any income above £7,500 will be taxed, and you’ll have to submit a self-assessment tax return. Make sure you opt into the scheme to claim your £7,500 allowance. Alternatively, you can choose not to claim the allowance, and instead pay tax through self-assessment as though the property is a rental. Rental income is taxed on your profits, so you’ll need to take your earnings and then deduct your expenses – for example, paying for cleaning or letting agent fees, building insurance, and accounting fees.

However, in London, you’re not allowed to rent out your property on Airbnb for more than 90 days in a year. From 6 April 2017, you can also take advantage of the ‘property allowance’, which allows you to claim up to £1,000 tax-free. But this can’t be claimed at the same time as the Rent-a-Room scheme, so you’re better off claiming Rent-a-Room if you can. The property allowance could apply if, for example, you rent out your driveway for extra parking, or allow people hire your living room to watch a sporting event.


  1. Income Tax rates and bands

The standard Personal Allowance from 6 April 2018 to 5 April 2019 is £11,850. Income tax bands are different if you live in Scotland.

Band Taxable income Tax rate
Personal Allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46,351 to £150,000 40%
Additional rate over £150,000 45%


You can also see the rates and bands without the Personal Allowance. You don’t get a Personal Allowance on taxable income over £123,700.




The standard Personal Allowance from 6 April 2017 to 5 April 2018 was £11,500.

Tax rate Taxable income above your Personal Allowance for 2017 to 2018
Basic rate 20% £0 to £33,500
People with the standard Personal Allowance started paying this rate on income over £11,500
Higher rate 40% £33,501 to £150,000
People with the standard Personal Allowance started paying this rate on income over £45,000
Additional rate 45% Over £150,000


Example: You had £35,000 of taxable income and you received the standard Personal Allowance of £11,500. You paid basic rate tax at 20% on £23,500 (£35,000 minus £11,500).

Your Personal Allowance would have been smaller if your income was over £100,000, or bigger if you received Marriage Allowance or Blind Person’s Allowance.




  1. Allowable expenses


Expenses which are revenue in nature, incurred by the landlord wholly and exclusively in relation to the lettings of the property before, during or between leases, such as:-

  • Property maintenance such as cleaning
  • Repairs, but not if the cause was before the property was acquired
  • Insurance, management, accountancy and legal costs
  • Rent payable
  • Water charges
  • Council tax for residential property, if paid by the landlord
  • Business rates for commercial property, if paid by the landlord
  • Capital allowances on the cost of plant and machinery used for the maintenance of the property
  • Impairment loss i.e. bad debts on rents
  • Loan interest as detailed in property income finance cost
  • For FHL, capital allowance on furniture, white goods, etc.

Wear-and-tear allowance (now known as replacement relief)

The 10% wear-and-tear allowance regime on furnishings used in residential property was upgraded to replacement relief at the end of tax year 2015-16. Under this, replacement of furnishings already provided by the landlord when they rent out a property can be replaced with other similar items, provided, it constitutes a replacement and not an enhancement. If items being removed are disposed, any proceeds will increase the net income value of that particular property business by the disposal proceeds less any incidental costs.

Allowable revenue expenses include the costs of maintenance and repairs to the property (but not ‘capital’ improvements).

A repair restores an asset to its original condition, sometimes by replacing parts of it. Property repairs can include replacing roof tiles blown off by a storm, replacing a broken-down boiler or redecoration between tenants to restore the property to its original condition.

Replacing a part of the property with the nearest modern equivalent is still a repair if the improvement is incidental to the repair, such as replacing a single-glazed window with a double-glazed window.

See examples of typical maintenance and repair costs.

If you have an insurance policy that covers the cost of some repairs to your property, you can only claim the additional expenses that you incurred for repairs which the insurance pay-out did not cover.

This also applies if you keep your tenant’s deposit from a Tenancy Deposit Scheme to cover damages they have caused to the property. You can only claim expenses incurred for repairs in excess of the amount of the deposit that you retained.

You can’t claim the costs for replacing furnishings or equipment in a property. These aren’t allowable as costs of maintenance and repairs, but from 6 April 2016 they may qualify for replacement of domestic items relief.

The costs of renewing fixtures such as baths, washbasins or toilets are normally allowable. These are considered to be repairs to the building as long as they are a like-for-like replacement and not an improvement.

The cost of replacing some small items, such as cutlery, crockery, cushions, bed linen and similar is also allowable if you are not claiming the wear and tear allowance. The items have to be of low value, have a short useful life, and need to be replaced regularly (almost annually) to qualify














  11. – Which?
  12. ACCA F6 study text by BPP
  13. ACCA P6 study text by BPP



Categories: Tax

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