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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15942
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Hi, I have a flat which I am renting out furnished. Can

Customer Question

Hi,
I have a flat which I am renting out furnished. Can I claim the cost of buildings insurance?
And can I claim for 'expenses to maintain property' as well as the 10% wear and tear allowance or is it one or the other?
Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

You can claim the buildings insurance premium as an expense against your rental income to the extent that it related to the flat you are letting. If, for example, you owned a house which had been converted into two flats and you lived in one whilst letting the other one, then you would need to divide the premium between the flats.

The wear and tear allowance can be claimed for a fully furnished property. That covers virtually anything in the property that can be moved and is used instead of making a claim for replacement of items of furniture as and when they are replaced. The cost of repairs to and maintenance of the property itself will be allowable.

Take a look here and here for more information.

I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.

Thanks, ***** ***** to be clear what is not covered by the 10% wear and tear allowance but is expensed to maintain the property is also allowable?

Also I forgot to ask can the initial purchase of furniture for a new rental property be claimed?

Thanks for the fast response

Expert:  TonyTax replied 2 years ago.
Repairs and maintenance are separate from the wear and tear allowance so what you say is correct.

If you claim wear and tear allowance for a fully furnished property, you cannot claim for the initial purchase of the furnishings. That would be like having your cake and eating it.
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Expert:  TonyTax replied 2 years ago.
Take a look here for some more information on the wear and tear allowance.