Q. I own several properties which I let out unfurnished, but they do contain carpets, curtains and white goods. I've been told I can no longer claim the cost of replacing those items against my rental income. Is that true?

A. For periods before 6 April 2013 HMRC permitted a deduction for the cost of renewing carpets, curtains and white goods in all let residential properties on a concessionary basis. That concession was withdrawn with effect from 6 April 2013. The new rules now state that a wear and tear allowance (10% of the net rents) that covers furnishings and similar items, can only be claimed for fully furnished properties.

Your properties don't count as fully furnished, even though they contain some white goods and carpets. HMRC will not accept claims for the cost of free-standing white goods in unfurnished residential properties. It will allow a deduction for the cost of replacing fixtures such as baths, toilets, integrated fitted ovens and hobs, as those costs can be classified as repairs. If you replace part of the fitted carpet you could claim that as a repair, but not the cost of putting new carpet down in the entire property.

Q. In July 2011 I sold a property which had been used for my business. I planned to reinvest the proceeds in another property, but that acquisition never happened. I know I should now pay Capital Gains Tax on the gain made in July 2011. How do I go about doing that?

A. The period in which you should have reinvested the proceeds ran out in July 2014, so you do need to pay the CGT due for 2011/12 unless you get the tax inspector to agree to extend the period for reinvestment. He will only agree to an extension if you were prevented from reinvesting by circumstances beyond your control.

The disposal made in July 2011 should have been reported on your 2011/12 tax return as part of your provisional claim for roll-over relief. You should now write to the tax office to withdraw that provisional claim and declare the full taxable gain. The tax will be payable immediately and interest will run from 31 January 2013.

Q. I am thinking of selling a flat that has been let since I acquired it in 2012. I do not own another property. My tenant is moving out soon, after which I will either stay in it myself or sell it. Will I get lettings relief to reduce the capital gains tax (CGT) payable?

A. Lettings relief only applies if you have lived in the property as your main home for some period. So if your tenant moves out and you sell the property immediately you will not get lettings relief, or any relief from CGT, other than the annual exemption.

However, if you move into the property and make it your own home, the gain relating to your period of occupation will be free of CGT. The last 18 months of ownership will also be free of CGT even if you are not living in the property during that period. The total gain on sale can also be reduced by lettings relief, which is limited to the lowest of these three amounts:

- the part of the gain which is exempt because the property was your main home;
- the gain attributed to the period it was let; and
- £40,000.

There are thus large tax savings to be made by occupying the property as your main home, but you must show that you intended the property to be a permanent residence, not a temporary occupation while the property was on the market. It is the quality of occupation not the length of time that demonstrates the property was your main home.

Q. After purchasing a residential property to let, I spent a considerable amount on kitchen refurbishments and a new central-heating boiler, before letting it for the first time. Can I claim those costs against the rents for tax purposes?

A. It depends on whether the property was capable of being let before you carried out those refurbishments. If it was legally safe to let it - then the expenditure was probably 'repairs' and is allowable. If the property was in such a bad state that it could not be let to anyone, even on a tiny rent, the costs are likely to count as improvements and will not be allowable. We need to look at the detail of what work was done, and the context of your entire lettings business before we give you a final answer.

Q. My business needs to move to smaller cheaper premises, but my current landlord wants me to pay a fee to surrender the property lease earlier than the next break point. Can I claim that lease-surrender payment as a business expense?

A. Unfortunately you can't get a tax deduction for this payment to your landlord, as a fee to release you from the continuing obligation to make payments under the lease is regarded as a capital payment. There is also no tax relief for this payment under the capital gains tax rules as it doesn't represent a cost of purchase or a cost of disposal of an asset. So for you it's a 'tax nothing'.