Government Confirms Change to Wear and Tear Allowance
The Government has announced that it will replace the current Wear and Tear Allowance system for buy-to-let landlords, after the responses to a consultation were published.
HM Revenue & Customs (HMRC) released the 170 responses to the 12-week consultation on changing the Wear and Tear Allowance – 137 of these were from individuals.
The Government confirmed that under the new system, landlords will only be reimbursed for actual expenditure.
The HMRC summary of the responses admits: “Many respondents expressed support for maintaining a Wear and Tear Allowance, principally because they saw it as simple.”
However, “a significant number of stakeholders agreed with the Government that the Wear and Tear Allowance was not fair, both as it only applies to landlords of fully furnished properties and because it provides relief where no expenses have been incurred”.
Considering the consultation, HMRC says the Government is keen on “minimising complexity” in the way the Allowance is paid in the future.
It adds that the Government has ruled out extending the scope of the Allowance and has decided against any transitional arrangements. However, in the future, the Allowance will “include the cost of disposing of old assets”.
The Government has now published draft legislation for technical discussion on how the Allowance will be administered in future. There are now eight weeks of consultation.
The complete responses and details of the further consultation can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/483726/Replacing_wear_and_tear_allowance_with_tax_relief_for_replacing_furnishings_in_let_dwelling_houses_-_summary_of_responses__M8067_.pdf
Remember to check LandlordNews.co.uk for the latest landlord law and advice.
Landlords in London Are Getting Away With Letting Out Unsafe Homes
Half of London’s boroughs didn’t fine a single landlord in the past year according to Generation Rent’s latest information. In …
Landlord Pays £9,500 Penalty for Failing to Maintain Property
A Liverpool buy-to-let landlord has been ordered to pay close to £9,500 after his property failed to meet acceptable living …
Letting Agent Banned for Failing to Protect Deposits
A letting agent who failed to protect £28,000 worth of deposits and rent has been banned from the business for …
Minimum Energy Efficiency Law Delayed, But There’s a Catch
Proposed minimum energy efficiency standards have been delayed, in a move welcomed by landlords, but the delay only affects landlords …
Are We on the Brink of a Mass Landlord Exodus?
Landlords say that the private rental sector (PRS) is not what it once was. A steady barrage of regulatory reforms …