The Government have made changes to the wear and tear allowance from April 2016. The allowance allowed landlords to offset 10 per cent of their rental income against tax for maintenance, regardless of whether they carried out any repairs or not. From this month, landlords will only be able to claim for maintenance they can prove has taken place.
This change means that careful record keeping of receipts and invoices is essential. The new measure will take effect for expenditure incurred on or after 1st April 2016 for corporation tax payers and 6 April 2016 for income tax payers.
If you’d like more information on this new rule or you have any other questions relating to lettings, please call Sharon McMahon on 02392 647 171 or email us at [email protected]