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Income tax deposit compensation & rent protection


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Hi All, just looking for some clarification on the treatment of the following items for upcoming 2016/17 tax year:

  • Compensation to Landlord from Deposit - essentially to payment from T to LL for damage to property
  •  Rent & Legal Protection (RLP) - payment from insurance to cover non payment of rent to LL

Not found anything on the HMRC websites so interested to know if these are exempt or attract income tax etc.

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You would record them both as income. Anything you spend on repairing the loss or damage you would record as an expense.

Google and Starbucks are only doing something that most landlords do not consider it worth bothering with ie putting lots of effort into producing a tax return that includes expenses claims for EVERYTHING they can legally claim for.

I probably spend more time and effort on my tax return than I do managing my rental portfolio !

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