This may seem like a simple question but in order to treat your letting as furnished you must provide more than just the basic cooker, fridge, carpet and curtains. As a guide a furnished property is defined as a property that you could just walk into and live in. So items of furniture like chairs or sofa, beds etc would need to be included in the property.

If you have a furnished property you can claim wear and tear allowance, the claim for wear and tear must be made at the outset of letting the property out, once you have chosen the wear and tear route you cannot then change at a later date to a repairs basis. You must continue with wear and tear until you dispose of the property or the status of it changes from furnished to unfurnished. Good record keeping will ensure that you make the right calculation.

Repairs and renewals, from April 2013 the renewals basis used by landlords for covering the cost of replacing items such as boilers has changed. You can only claim repairs and not the renewal, for example say you have a boiler, you spend £300 on repairs, this is allowable, the following year it packs up completely and you replace it with a boiler costing £800, you cannot claim this against rent, HMRC advise that businesses should apply capital allowances to plant and machinery, however, you cannot claim capital allowances on a residential letting. Some commentators state that the renewal could be classed as tools of the trade, although this has yet to be tested and caution is advised.