Wear and tear allowance to be scrapped from April 2016

Whilst the change to mortgage interest relief for private landlords made the headlines after yesterday’s budget, another important change that will impact the buy-to-let sector went largely unnoticed. From April 2016 landlords will no longer be able to claim a 10% allowance for general wear and tear of furnished properties. From this date, only costs actually incurred in maintaining a property can be deducted from a landlord’s tax bill. Industry experts fear that this effective reduction in income will force landlords to raise rents to make up the short fall.

Full story available from Property Industry Eye: http://www.propertyindustryeye.com/landlords-tax-perk-to-be-reined-back-over-next-six-years/

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