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When is it appropriate to claim a wear and tear allowance versus the renewals allowance?

This might be a common situation for people who decide to let their flat furnished either after moving or relocating.

To let a flat furnished you will have to buy all the initial furnishings such as a bed, a sofa and tables. Are these allowable as expenses on the year’s tax return? If so is their reducing value allowed to be claimed in future using the wear and tear allowance or are you obliged to use the renewals allowance?

There are two ways of claiming capital allowances for furnishings in a fully furnished residential property, the 10% wear and tear allowance, and the renewals allowance.  The renewals allowance is only applicable to the net cost of replacing a particular item of furniture etc, but not the cost of the original purchase so could not be used in the first or even second year depending on the depreciation policy used.