In October, our article provided an overview of the Changes to Tax Relief on Interest for Landlords that took effect from April 2017.
From our discussions with landlords, we often highlight other allowable costs that can still be set against income before computing the tax liability.
These may include:
- general maintenance and repairs to the property, but not improvements (see below)
- water rates, council tax, gas and electricity
- insurance, such as landlords’ policies for buildings, contents and public liability
- costs of services, including the wages of gardeners and cleaners
- letting agent fees and management fees
- legal fees for lets of a year or less, or for renewing a lease for less than 50 years
- accountant’s fees relating to the rental business
- rents (if you’re sub-letting), ground rents and service charges
- direct costs such as phone calls, stationery and advertising for new tenants
- vehicle running costs (only the proportion used for your rental business) including mileage rate deductions for business motoring costs (45p/mile up to 10,000 miles per tax year) see https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income#mrd
