The wear and tear allowance is calculated by taking 10% of the net rent received for the furnished residential accommodation. To find the ‘net rent’ you deduct charges and services that would normally be borne by a tenant but are, in fact, borne by the taxpayer (for example, council tax, water and sewerage rates etc).
假设出租funished flat 一年房租10.000，
房东付utility bill 1000，
房东付 building service/management charge 1000，
中介费1000，
morgage interest 3000,
rent income tax 20%
那么wear and tear allowance应该是多少呢？
是（房租-bill）*10% 即（10,000-1000）*10%=900
还是 （房租-所有花费）*10%， 即（10,000-1000-1000-1000-3000）*10%=400呢？
还有这个10% wear and tear allowance 是免税呢，还是直接从tax中扣除？
已知net income 是4000，
tax=(4000-allowance)20% 还是 400020%-allowance？