I have just read a tax book and the information says that once you choose a method to claim wear and tear or replacement allowance you must use it on all your rental properties. This conflicts with the advice you have given me . can you clarify this please.
I Cannot scan but here is the exact wording it is from a book written by Carl Bayley BSC ACA who states he is a tax expert. "once you have chosen one method you must stick with it on ALL of your furnished lets
on all of your properties! "He then advises that if you think one method would be best on one or more properties and one on another to consider acquiring some properties yourself and the others by your spouse. I have rung the tax office but I am still waiting ring back on this. This is really important to my son as it the first tax return properties his father left when he died and we need to get this right as I also understand that once the decision is made you have to stick to it. His father always claimed wear and tear but many tenants now want to put there own furniture in and I am not sure if we should continue this. Thanks
again.My HMRC approved software allows me to claim wear and tear allowance on a property by property basis and always has. The software company have to have their software cleared by HMRC before it can be released and they are adamant that HMRC have never had a problem with this. Some taxpayers chose this way as they didn't want to make a claim and tear allowance and then have it rejected and opted renewals basis instead. Once a method has been chosen individual property it has to be stuck with.As HMRC have effectively withdrawn relief of furnishings and white goods with effect from 6 April 2013 (this is a matter being disputed by the professional bodies and some taxpayers are still claiming ), your son will better off claiming wear and tear allowance and trying to make sure his properties are fully furnished or he will get no relief at all.
Click on the first link of the seach results here and you will see what a mess this legislation is right now.