Re-claiming Tax Paid

[tony009]

Hi All Again,

Would it not be a good idea to list here ALL the taxation reclaimable expenses involved with renting a property (literally from "A" to "Z")? (in simplicity terminology) as i am sure that it would be a great help for all those associated with self-assessment when renting property.

Cheers. T.

[plym77]

Hi Tony

The list is endless and it would be impossible to list it definitively!!

The main types of expenses can be found in the HMRC property manual (which appears to have merged the old IR150 help booklet) on HMRC website:

http://www.hmrc.gov.uk//manuals/pimmanual/PIM2015.htm

HMRC seem to have managed A to T!!

I have also found this on another government website which may be of use to you:

Allowable expenses

The expenses you can deduct from letting income (unless it’s under the Rent a Room scheme) include:

letting agent’s fees

legal fees for lets of a year or less, or for renewing a lease for less than 50 years

accountant’s fees

buildings and contents insurance

interest on property loans

maintenance and repairs (but not improvements)

utility bills (like gas, water, electricity)

rent, ground rent, service charges

Council Tax

services you pay for, like cleaning or gardening

other direct costs of letting the property, like phone calls, stationery, advertising

If your annual income from the letting is less than £15,000 (before you’ve taken off expenses) you include the total expenses on your tax return; if it’s £15,000 or over you need to provide a breakdown.

Bear in mind that you can only claim expenses that are solely for running your property letting business. If the expense is only partly for running your business (or if you use the property yourself) then you may only be able to claim part of it.

Non-allowable expenses

When you work out your profit, you can’t deduct:

‘capital’ costs, like furniture or the property itself

personal expenses – costs that aren’t to do with your letting business

any loss you make when you sell the property

But you may be able to claim some allowances instead.

Hope this helps - any queries, please shout

Sherena

(Plym 77)