Furnished lettings landlords are advised, if possible, to postpone any replacements of furniture, TVs, carpets, curtains, etc until after 6 April 2016, claim the ‘Wear and Tear’ allowance for 2015/16 and the ‘RFR’ subsequently.
It is proposed that as from 6 April 2016 the ‘Wear and Tear Allowance’ is to be replaced by a new ‘Replacement Furniture Relief’ (RFR) for all landlords whichever type of property, furnished or unfurnished. The rules allow for the deduction of costs actually incurred for the replacement of furnishings. The type of items will be limited to those used by tenants.Certain items are deemed to be part of the fabric of the property itself (e.g. baths, toilets, boilers, and fitted kitchens), replacement of these will still be treated as an allowable ‘repair’ to the property itself. The RFR applies to all rented properties no matter the level of furnishing.