Is my furnished letting furnished?

At first glance this may appear a somewhat silly question. However, when it comes to claiming a tax allowance which is based on a property being furnished, an understanding of how much furniture is required to satisfy the “furnished” test is important.

In the past, it has been assumed that simply providing a bed, chair, table and a wardrobe would be sufficient. These assumptions were based on some old stamp duty provisions. Recently though H M Revenue & Customs (HMRC) appear to be taking a stricter definition of furnished and according to HMRC manuals refer to other items such as televisions, fridges, crockery, curtains, cookers etc as being the sort of things that would normally be provided in furnished accommodation. Indeed some suggest that “furnished” means a tenant simply has to move in with their clothes and nothing else. Getting this definition wrong could result in landlords not being able to claim the 10% annual wear and tear allowance, and instead having to pay large bills for replacing assets without any prospect of any tax relief.

If you would like further information or assistance on the rules surrounding furnished lettings please give us a call on 01733 371180.

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