What the wear and tear allowance means for landlords and property maintenance

Are you a landlord in Bromley, Beckenham, Dulwich and surrounding areas? Do you sublet? Surely you have considered the affect of reporting income from your property. If you are even considering investing in management property you really should know what you are getting into. The most dreaded of all financial obligations is taxes. This article covers one of the ways you can recoup or write off your expenses in managing you property.

The "Wear and Tear Allowance" which allowed landlords to cover expenses of managing and the upkeep of their properties was scrapped in 2016. It was replaced by the "Replacement Furniture Relief" system. This system allows a more balanced way of getting credit for up-fitting your buy-to-let property. It means giving more attention to your books but it will benefit you in the long run. Whether you have just one property or multiple properties, as a landlord you benefit.

There is a link to the entire article if you need more information and it is worth your time to do the homework. You will alleviate many headaches and find that sub-letting can be an enjoyable investment venture. Try the link; you will thank yourself for it. Good luck investing.

Key Takeaways:

  • Many landlord related tax changes have been brought in over the last 12 months, most notably the stamp duty hike, and a wave of further regulatory and tax changes are due to take effect in April 2017.
  • The wear and tear allowance served landlords well, but the recent changes have caused most buy-to-let mortgage owners a headache.
  • If you invest in an empty property that needs furnishing, you won’t be able to claim any relief against any new furniture, as essentially you’re not replacing anything.

Key Quote:

"The wear and tear allowance served landlords well, but the recent changes have caused most buy-to-let mortgage owners a headache."

Read the full article:

http://www.landlordzone.co.uk/landlordzone-update/what-the-wear-and-tear-allowance-means-for-landlords-and-how-to-maintain-your-profitability

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