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How do you calculate wear and tear allowance?

Answered by: Lesley Stalker, Robert James Partnership

Wear and tear allowance is an alternative to the ‘renewals basis’ for residential property landlords who let property on a fully furnished basis. The wear and tear allowance is calculated as 10% of the rent less council tax and water rates if paid on behalf of the tenant.  This covers the cost of renewing moveable plant and machinery such as furniture or furnishings - for example sofas, beds, dishwashers, carpets, curtains, linen, crockery, or cutlery.  In addition to the wear and tear allowance, the cost of repairing or replacing fixtures and fitting for example a new sink, washbasin or toilet may also be claimed.