@littleoneraerae What are the tax implications of the removal of the wear and tear allowance for rental properties?
Previously landlords of fully furnished residential properties could claim a percentage of their rent to cover wear and tear of furniture and fittings, irrespective of what they actually paid out during the year. From 6 April 2016 this allowance has been replaced by tax relief for replacement of domestic items. Where furniture and fittings are replaced the full cost of the replacement can be set against rental income. Only the cost of replacement is allowable, so no relief can be claimed for the initial cost of furnishing a newly let property. So the amount of tax relief obtained may actually be higher than under the wear and tear allowance, depending on how often items are replaced.