UK Landlord Forum / Life

Hi,

I am new to this and I am renting out my house to a housing association on a lease. They needed some specific works done to the property to meet their criteria which must be done before it can be rented through them. This plus some specific furniture must also be supplied . Also, i have had to change my mortgage to a buy to let., for which extra finance costs have incurred. What can I claim for as expenses? Any other advice on this as well as I am new to this all.

Is there a list of allowable expenses anywhere ?

Buy the latest version of this - http://www.amazon.co.uk/How-Save-Property-Carl-Bayley/dp/1907302751 - also tax deductible.

Thanks. Will do.  In the meantime, anyone know the answer to this?

Hi,

Can someone please help me with this?  The tenants ruined the kitchen , flooring ect so it all had to be refurbed again. Is that tax deductible?

Never rely on information from a blog (including my own)
Do your own research...

Mr Sheldon
There are many websites that will explain what you can and cannot claim for:
I would usually refer to the HMRC site:
This page contains a few useful links to other pages....

http://www.hmrc.gov.uk/manuals/pimmanual/pim3005.htm

They needed some specific works done to the property to meet their criteria which must be done before it can be rented through them.
Cannot comment on what "some specifc works" mean...can you be more...specifc?
General rule of thumb is repair is OK but improvement is not.
You could replace a washing machine with another washing machine, but if you replaced it with a washer dryer then not so OK and you need to in theory figure out what a washing machine would have cost....rather open to gaming as a new washing machine can cost legitamately anything between £199 (beko) and £899 (miele).

The following link will explain that furniture is not an allowable expense but wear and tear might be available  ...get ready for change of rules impact coming soon 

http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm

The costs of financing e.g bank fees, valuation fee, mortgage payment etc are for sure permissable (for now).  So fees and costs for remortaging can be included as can the interest payments (but again get ready for change of rules soon). 
As is landlord insurance, BG gas cover, EPC, CP12, agent fees etc etc etc etc etc:  whack it all in and let George take the swing.

As general comment whilst of course you should stick to the rules and submit everything in proper order I find some folk getting incredibly stressed out whether a new key is considered as capital expense or a repair....
I would be sensible and also consider that in the exceptionally unlikely (but still possible) event HMRC decides to open up your book so long as you have not been blatantly ignoring any tax liability Mr HMRC isnt going to take you to jail at most a minor fine might (stress might) come your way.  Speaking from experiences of friends who didnt even bother to submit a tax return 

If you want to itemise what you are spending I can let you know which items you should and should not include.
Bear in mind though my advice would always err on the side of less tax paid where possible.

Best of luck