What is Wear and Tear Allowance?

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What is wear and tear allowance

Until 5 April 2016 landlords renting out a furnished property were allowed to make a deduction of 10% of net rent (rent less rates) against their rental profits for Wear & Tear Allowance.

From 6 April 2016 (the tax year 2016/2017) this Wear & Tear Allowance is now abolished.  This wear & tear allowance reflected the use of things like furniture, furnishings & kitchenware and could be claimed as a flat rate each year regardless of actual spending.

As of 6 April 2016, although this allowance is abolished, landlords are now able to claim for the costs of any actual replacements they made. So, for example, the replacement of a bed, sofa or pots & pans.


Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.