Reduction of landlords’ wear and tear allowance
Up to now, landlords with buy-to-let properties have been allowed to claim a 10% wear and tear allowance on any furnished home they are letting, even if they have not had to spend any money on replacement items or refurbishment.
As of 6 April 2016, they can only reclaim what they have spent, which will mean more paperwork for landlords..
Rent-a-room allowance rises to £7,500
The amount that home owners can earn tax-free from taking in a lodger or holidaymaker increasing by £3,250. Under the new limit, a landlord or landlady can make up to £144 a week without facing an income tax bill.
We will be happy to advise you on how to save Tax on your rental income.