Property

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How is the 10% wear and tear allowance claimed?

The wear and tear allowance is computed on 10% of Rental income less type 1 expenses. If a claim is made then no claim may be made for furniture renewals.

Ensure that the type of property entered via the Property in the UK screen is set to Furnished Letting. Click the magnifying glass beside the income type field and select the Furnished Letting from the list.

IRIS will then prompt whether a 10% wear and tear claim should be made.

Enter Y and click OK on the Property in the UK screen to save the change.

There is an exception report for non-commercial lettings restricting the expenses. What does it mean?

Properties that do not charge a commercial rate for the rent cannot create a loss by claiming expenses that exceed the rent received.

If IRIS recognises the property as a non-commercial letting, the expenses will be restricted.
Check the type of property is not set to an Unfurnished Letting, Nominal Rent. This is set via the Property in the UK.

Click the magnifying glass beside the income type field and select Unfurnished Letting and change to an alternative sub-type.