Howlader & Co Blog

rental accounts

Rental accounts – the 10% wear and tear rule

17th December 2010

An oft misunderstood rule is the 10% wear and tear allowance. This is one of the best tax allowances available for landlords. Essentially, 10% of rents (less any utilities/council tax/any other bills that a tenant would usually pay) is subtracted from the rent. However, you must choose between this treatment or the "replacements method" where you claim a tax deduction for more