10% wear & tear allowance

francohoops

Hi
I rent out a flat and want to claim the 10% wear and tear allowance for furniture and fittings. Is the 10% calculated on the gross rent or after deductions for insurance, rates etc?
Thanks
F

anselld

Gross rent.

morgani

Gross rent less council tax and water rates if you pay for these and not the tenant.

00ec25

The wear and tear allowance is calculated by taking 10% of the net rent received for the furnished residential accommodation. To find the ‘net rent’ you deduct charges and services that would normally be borne by a tenant but are, in fact, borne by the taxpayer (for example, council tax, water and sewerage rates etc).

http://www.hmrc.gov.uk/manuals/pimmanual/pim3200.htm

francohoops

Thanks for your replies.

Just to be clear -buildings insurance and bolier indurance cover - these would not be deducted from gross rent as the landlord would normally pay these. Is that correct?

F

purdyoaten

francohoops wrote: »

Thanks for your replies.

Just to be clear -buildings insurance and bolier indurance cover - these would not be deducted from gross rent as the landlord would normally pay these. Is that correct?

F

That is correct.