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Good evening,
An attempt by Parliament to simplify tax law has led to the withdrawal by HM Revenue & Customs of Extra-Statutory Concession B47.
Amongst the perverse consequences of this has been the creation – at any rate in HMRC’s view – of a distinction between integrated and free-standing washing machines. While the integrated washer is considered to be part of the ‘entirety’ of the house, the free-standing is held to be a separate piece of plant, and the two are treated differently.
It seems to me however that an integrated washer stands on its feet under the counter, and is connected to the services, in exactly the same way as an under-the-counter free-stander would be; that the difference is only aesthetic; that the ‘integrity’ is an illusion; and that for tax purposes, they are identical.
Tell me,am I missing something? Would there be any material difference?Regards, E.L.
Re: Washers and landlord tax
Integrated washing machines, dishwashers and fridges are fixed behind and therefore part of the kitchen furniture. Washing machines can be raised on plinths and behind kick panels. Dishwashers and fridges are often screwed firmly to the kitchen worktop or carcass. All appliances hidden behind matching decor panels and deemed, quite rightly as part of the fixtures and fittings. Hence the amended tax regulations.
Re: Washers and landlord tax
Martin is correct and that’s always been the way with estate agents, new home builders etc.
Built in and integrated are considered to be part of the home whereas freestanding product is regarded as moveable.
TBH it sounds as if HMRC is playing catch up as it’s been like that since I was installing stuff over a decade ago.
K.
Re: Washers and landlord tax
A better reply than I had hoped for, and prompt. Yesterday,’submit’ sent my thanks into outer space.
Re: Washers and landlord tax
It works!
Kwatt: you seem to speak of new build and owner occupancy, before the crash. The world moves on.Few tenants wish to haul appliances around with them, not even a few inches to clean behind. Most rather find non-ownership to be quite liberating. Combined with assured shorthold it gives them leisure to shop around, creating lively competition among landlords and raising standards generally.
Thus the market does not share your view. The absence of non-integrated, freestanding, removable appliances from what is claimed to be a ‘fitted kitchen’ is NOT the recipe for a quick let.Talking of high standards, it was only last tax year that I fitted (yes, I say “fitted”) an Ise10 to one house. If I had but known about B47 I could have covered it with fablon in a maple pattern; as it is I am £250 down. Rather a pity because it needs a fridge sometime and now it looks like it’ll have to be a Hotpoint.
The tenants gave their notice and left the country, but I don’t think it was because of the washer. It re-let in 3 days.Re: Washers and landlord tax
We are just talking about different packages of goods for different markets. Quite harmless in itself, it is the introduction of ‘fixture’ that starts trouble. The law of fixture and entirety is not as simple as you might think,it depends greatly on the facts of each case. We could argue all day.
We have only to consult your help pages to learn of the inadvisability of integrated washers and fridges. They are a vanity niche, and it would be strange if such a contrivance were held to be enough to expel free-standing washers and fridge-freezers from the entirety.
What is the degree of attachment? A great industry is founded upon the ability to remove and replace standardised kitchen consumer durables with little difficulty–the less,the better. The commercial and functional unity of fittings and house is greater than the physical attachment.
The withdrawal follows from CIR v. Wilkinson (2005), so we are now exposed to s.35(2) of the Capital Allowances Act 2001.Re: Washers and landlord tax
Washtub wrote:We could argue all day.
I’m not at all sure as to whom you seek to argue, or why? What exactly is the point you are trying to prove? What good will it serve trying to define what is a fixture and what isn’t? The ruling on that has already been made.
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