June 19th, 2015
Rental property and the renewals basis - an update
When someone rents out a property, the rental income is taxable but certain expenses are deductible from profits, and therefore reduces the tax payable. There are special rules that determine whether costs relating to things such as carpets/curtains/fridges/cookers are deductible.
The rules relating to such things have changed but research shows that the knowledge of these changes and the alternatives available is very low.
This article seeks to inform people of the changes by studying the impact of the withdrawal of the renewals basis and the alternative ways that landlords can claim tax relief for expenditure on capital items, such as carpets/curtains/fridges/cookers.