From 6th April 2016 the wear and tear allowance will be removed and replaced by the actual expenditure. For those landlords who have furnished property this is likely to mean an increase in their tax payments from 31st January 2018. Planning for this cost could be critical where the rents only cover the mortgage payments.
The restriction will come in from 6th April 2017 and will be phased in over five years. This will only affect higher rate taxpayers and only those with residential let property (not commercial property) and does not apply to a property business or furnished holiday lets. So for landlords that are basic rate taxpayers there […]