Furnishing has always been an important distinction, as only furnished lettings entitle you to the valuable Wear and Tear Allowance of 10% of the rents.
Now it is definitely worth reviewing whether you could show the property is furnished given that the renewals basis for replacing items in commercial or residential properties let unfurnished ceased from 6th April 2013.
Loosely-speaking, HMRC guidance is that a property is furnished if it includes some (but not necessarily all) items that a tenant or owner-occupier would normally provide in unfurnished accommodation.
This is an area difficult to interpret so I would encourage you to seek advice from a professional such as your local TaxAssist Accountant.
Last updated: 1st July 2013This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.