Buy to Let - wear and tear

Treatment in accounts for Buy to Let properties

On wear and tear, you cannot offset the initial capital purchase cost of furniture but you can make a deduction for wear and tear in one of two ways:

1. An allowance of ten per cent of ‘net rent.’ Net rent is the rent received, minus charges and services paid by the landlord (council tax, water, sewerage rates etc).

2. The cost of replacing the particular piece of furniture etc. In other words, whilst you can offset the replacement cost (wear and tear) you cannot offset the original purchase cost.  Thus you cannot claim for your first sofa, but when it gets ruined and you need to replace it, you can claim the cost incurred in replacing it.

In practice, most will opt for the 10 per cent deduction and this would cover things like:

• Moveable furniture, beds etc· 
• TV’s· 
• Fridges and freezers· 
• Carpets

If you choose this option then you cannot opt back in to individually itemising any items of expenditure in that or subsequent years, ie. this is a one off, forever decision.

Please note: although the FSA does not regulate most Buy to Let mortgage advice, check that the broker concerned will treat you with the same skill, care and diligence as if they did.

See also:
buy to let mortgage calculator: how much can I borrow?
buy to let mortgage calculator: how much rent should I charge?