Properties to Let Cambridge: Understanding Tax Deductions for Furnishings in Cambridge UK

Furnishing a rental property is an important part of attracting tenants and maximising income. But many landlords miss out on valuable tax savings simply because they aren’t aware of what can be claimed. If you own a property to let in Cambridge, here’s how to make your furnishings work harder for you at tax time.

Furnished vs Unfurnished Lettings in the UK

HMRC distinguishes between furnished and unfurnished lettings:

• Furnished Lettings: Include essential items like beds, sofas, white goods, and kitchen equipment.

• Unfurnished Lettings: Typically only include flooring, curtains, and basic appliances.

Short-term lets are generally expected to be furnished, while long-term lets vary depending on the tenant profile.

What Can Be Claimed as Tax-Deductible?

Landlords can deduct certain costs from rental income to reduce their tax bill. These may include:

• Essential furniture: Beds, wardrobes, sofas, dining tables, chairs

• Appliances: Fridges, freezers, washing machines, ovens

• Smaller items: Kettles, toasters, lamps, vacuum cleaners

Note: The previous "wear and tear allowance" was abolished in 2016. Now, you can only claim for the actual cost of replacing furnishings — not the original purchase.

Record Keeping and Documentation

To support your claims, you’ll need to maintain good records:

• Receipts and Invoices: Keep proof of purchase for each item

• Photos: Useful for inventories and condition tracking

• Inventory Logs: Document what’s in the property, especially during tenant handovers

Common Mistakes to Avoid

• Claiming for Personal Use Items: Only items used exclusively for the rental property are deductible.

• Confusing Capital vs Revenue Expenses: Replacing an existing item is usually deductible. But a new purchase or upgrade may count as a capital expense and require depreciation.

Cambridge Stays Helps You Track It All

When you work with Cambridge Stays, we simplify the tax side of letting by:

• Preparing end-of-year summaries for your accountant

• Maintaining up-to-date inventories across all properties

• Recommending tax-efficient furnishing strategies that enhance guest appeal and protect your budget

Don’t Leave Money on the Table

Furnishing your rental is an investment — and one that should work for you at tax time. Want to maximise deductions and keep things compliant? Let Cambridge Stays help you furnish smart and claim right.