tax return

follyfoot

Can you please tell me whether the following are deductible expenses since my accountant has not included them in my tax return:

gas safety check
electrical safety check
protecting tenants deposit and membership
fridge repair
shower repair
toilet repair
additonal keys cut

LandyAndy

They all look wholly and exclusively incurred in the course of the trade so I would have thought they were allowable but I'm no tax expert.

Why not just ask your accountant why he has omitted them?

Try here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013376.

or here. http://www.taxfile.co.uk/blog/2007/11/allowable-expenses-that-you-can-deduct.html

I just googled 'allowable expenses for landlords' and selected UK sites only.

N79

Was this the first tenancy for this property?

follyfoot

LandyAndy wrote: »

They all look wholly and exclusively incurred in the course of the trade so I would have thought they were allowable but I'm no tax expert.

Why not just ask your accountant why he has omitted them?

Try here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013376.

or here. http://www.taxfile.co.uk/blog/2007/11/allowable-expenses-that-you-can-deduct.html

I just googled 'allowable expenses for landlords' and selected UK sites only.

Just spoken to him the discrepancy in figures is due to the interest on mortgage being different. i had a loan on my property from may but property was let 3 months later so according to him i can only deduct interest from when property was let.

follyfoot

N79 wrote: »

Was this the first tenancy for this property?

yes, it was

stevetodd

follyfoot wrote: »

yes, it was

Don't forget the mortgage interest, letting agent fees (if you used them), building insurance (or service charge if it's a flat), other expenses (postage, tel calls, advertising, petrol at 40p per mile travelling to the property, utilites charges and council tax from when you completed until your tenant moved in) and the 10% wear and tear (if it's furnished)

stevetodd

follyfoot wrote: »

Just spoken to him the discrepancy in figures is due to the interest on mortgage being different. i had a loan on my property from may but property was let 3 months later so according to him i can only deduct interest from when property was let.

If you bought the property with the intention of living in it at first and moved in but then changed your mind then he is correct. But if you bought it intending to rent it out but it took 3 months due to doing work and/or finding a tenant I am almost certain that he is wrong

N79

follyfoot wrote: »

yes, it was

Expenses in preparing a property for its first rental are not tax deductable if I remember correctly. Therefore the repairs prior to the start of the letting can not be included.

Can't think of a reason why deposit expenses and membership (RLA or NLA I presume) should be excluded.

Interest can be deducted from the moment the property was put on the rental market, as per stevetodd's post.

follyfoot

stevetodd wrote: »

If you bought the property with the intention of living in it at first and moved in but then changed your mind then he is correct. But if you bought it intending to rent it out but it took 3 months due to doing work and/or finding a tenant I am almost certain that he is wrong

i had been living in the property for a period of time i then bought another property and had a period of about 2months where i was paying two mortgages until i could move into the new property

stevetodd

follyfoot wrote: »

i had been living in the property for a period of time i then bought another property and had a period of about 2months where i was paying two mortgages until i could move into the new property

I used to know this rule (but it will be easy to google it or get it of the Inland revenue's website) but I believe if you own 2 properties you can nominate which one is your 'main residence'. I do seem to remember though something about living in it (but can't remember the exact wording). Can you not argue that you were living in both properties and merely stayed at the rental property in order to facilitate the renting of it?

Might be difficult to argue if you were using that address for Inland revenue correspondence, why don't you just give them a call. I have always found them extremely helpful on the telephone

Premier_2

follyfoot wrote:

...
gas safety check
electrical safety check
protecting tenants deposit and membership

fridge repair
shower repair
toilet repair
additonal keys cut

follyfoot wrote:

yes, it was

In which case, top 3 probably, bottom 4 probably not (but they could possibly be used later to offset any CGT liability when you sell)