Change to taxation of Landlords
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Other changes <strong>to</strong><br />
Property <strong>taxation</strong><br />
In other news, wear and tear allowance<br />
(worth 10% <strong>of</strong> gross rental receipts for<br />
landlords <strong>of</strong> furnished accommodation)<br />
is <strong>to</strong> be abolished from April 2016<br />
onwards. It will be replaced with a<br />
deduction for costs as they actually incur<br />
on replacement – notably no deduction<br />
will be available on initial purchase. This<br />
was a significant tax relief for landlords,<br />
given that it was <strong>of</strong>fset against gross<br />
rental receipts. It will no doubt be sorely<br />
missed, and may fac<strong>to</strong>r in<strong>to</strong> the<br />
decisions <strong>of</strong> landlords over whether <strong>to</strong><br />
<strong>of</strong>fer furnished accommodation in the<br />
future.<br />
There is some good news for property<br />
owners – after many years <strong>of</strong> being fixed<br />
at £4,250, rent-a-room relief is <strong>to</strong> be<br />
increased <strong>to</strong> £7,500 per annum.<br />
Rent-a-room relief applies <strong>to</strong> income from<br />
providing furnished residential<br />
accommodation in the taxpayer’s only or<br />
main home, i.e. lodgers.
Change language