Property Depreciation Schedules - The New reality

Case Study – UK Townhouse (Built After 1987 – Lived in until 2019)

Client Name and Unit Number have been altered for privacy.

 

Matt came to Washington Brown looking to maximise his tax depreciation deductions. Having recently moved to Australia from the UK, Matt rented out the family home in England when they left.

The house was originally built in 2005 and was purchased for £400,000 in 2010.

The two storey house consisted of 3 bedrooms and 2 bathrooms, with a total internal area of 120sqm.

 

UK Townhouse Depreciation

As the house was only made available for rent after May 9th, 2017, he was not able to claim deductions for the fixtures/fittings (Plant & Equipment / DIV 40).

Matt was, however, eligible to claim deductions on the structural elements of the property (Building Allowance / DIV 43). This included the original building, painting work by a previous owner, as well as the new kitchen installed in 2015.

Matt’s report from Washington Brown allowed him to claim the yearly deductions displayed below. The first year figures are specific to the date the property was first made available for rent in August 2019 (slightly less than a full financial years’ ownership).

By providing the Washington Brown depreciation schedule files to his accountant, Matt was able to claim over $4000 in his 2019/2020 tax return. Deductions of over $4000 will continue until 2045, or until Matt moves back in, or sells the property.

Note: Please scroll across on mobile to view full deductions.

Financial Year Capital Works Deductions Plant & Equipment Low Value Pool Assets Amount Claimable
2019 / 2020 $4,027 $0 $0 $4,027
2020 / 2021 $4,400 $0 $0 $4,400
2021 / 2022 $4,400 $0 $0 $4,400
2022 / 2023 $4,400 $0 $0 $4,400
2023 / 2024 $4,400 $0 $0 $4,400

To view the full depreciation schedule, including an individual asset break up and Prime Cost deductions, you can download a copy here.

If you would like to get your own depreciation schedule, or find out how much you could claim, get a quote here.