As reported in last month’s Newsletter, the Government has announced that the current 10% Wear and Tear Allowance will be scrapped. From April next year, landlords will only be able to deduct costs they actually incur for replacing furnishings in their rental properties. There will also be no allowance for improvement (e.g if a landlord replaces a washing machine with a washer dryer, only the cost of a like for like replacement can be claimed). ARLA has responded to the HMRC Consultation on this issue. Please contact Sulgrave Estates for a copy of their Formal Response.