Allowable expenses: buy to let

sarlyka

I didn't know which topic this should come under so I thought I'd try the tax topic first.
I let a house and I am filling in my first tax return. I have a buy-to-let mortgage and want to know what expenses are allowable from the following list:
1. interest only mortgage payments
2. mortgage insurance (mortgage company would not agree to the mortgage without this)

I'm pretty certain that the first is ok but not sure about the insurance.

Thanks

mikey72

Post in the buying, renting, and selling.
There is more on the list you can claim for.

dlk

You can see details about what you can and cannot claim for on your self assessment 'notes on filling in your' form.

As for the mortgage insurance, if you don't want it just cancel it! Other than buildings insurance a mortgage lender isn't allowed to insist on any other forms of insurance being in place.

Rolo_Tomasi

Interest on the mortgage is fine.

With regards to the insurance, is this an annual premium which repays the mortgage on your death, critical illness etc? If so I dont think this is allowable as if you were to claim under the policy then the payout would be tax free therefore the premiums are not tax deducable.

fengirl_2

Rolo is correct, for the wrong reason. The mortgage protection insurance is a personal expense - it will pay off the mortgage if you are sick, etc and save you from going backrupt or whatever. It is nothing to do with the letting.

zygurat789

Beware, any major repairs you had done before you received rent may be classed as capital and not allowable.