Property Income Question — OpenTuition Forums

Ggrafiniata15y ago

Hi All,

If you are studying with Kaplan, please can you see on p.66 of the Textbook. There is Example where BOTH "Renewals Basis" and "10%Wear and Tear" are applied! I find this wrong as you have to choose only one of the Reliefs..Here is the Example from the Book:

201011
£
Rent Income 3,600
Expenses:
?Repair to kitchen (replacement of one broken (275)
kitchen unit with a unit of similar standard)
?Redecoration (750)
???Wear and Tear 10%*3,600 (360)
Property Income: 2,215

Why you claim BOTH Reliefs...I think this is wrong in the book as you have to choose whether to claim Replacements,Renewals..or Wear Tear allowance......?Anybody having an idea?

Vvesela.jana15y ago#1

With re the replacement of the kitchen - I think this is allowed in this example, as the new replacement is the similar standard.(not allowed if the replacement is for a kitchen of a higher standard)
W+T will be also allowed regardless the replacement.
But no idea about redecoration. I would do the same mistake as you here:-) I would claim W+T but not redecoration. Hmmm have to have find out.

Ggrafiniata15y ago#2

Thanks vesela.jana, I have found it out. As usually you can not claim Both Reliefs..the replacement of kitchen is allowed as it is not in the scope of the "Renewals basis" as it is regarded as fixture and being part of the building. Otherwise for assets renewals vs T&W only one basis can be choosen

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