Expenses and allowances on income from property

simon_of_london

Hello :wave:,

I have owned a flat as my primary residence for the last 4 years but am now having to move due to work. I am about to let out my property and rent another property nearer work.

I am looking at the tax allowances on the income that I will get from this and am not sure on one of the points mentioned on the Directgov web-site...

It states that one of the allowable expenses is:

" rent, ground rent, service charges"

As I am new to this, does this mean that the rent I will be paying on my new property (the place I will be renting nearer work) can be claimed as an allowable expense?

If this is the case then my allowable expenses will exceed the income that I will be getting from renting out my flat. If this is the case do I still have to complete the tax form? :think:

Appreciate any learned advice that anyone can give on this matter.

Best regards

Simon

heretolearn_2

No, you can't claim the rent on your new home, nice thought though!

Only expenses directly related to the rented property can be claimed. That 'rent' is a bit misleading though, I'm finding it hard to think of what might be covered - ground rent, yes, service charges, yes, but normally you own a property you are letting out. I suppose if you were sub-letting part of a property you were renting, you could claim a proportion of the rent.

simon_of_london

Doh! I thought it a bit too goot to be true.

Another quick questions...

On the "wear and Tear" allowance it says 10% of net rent. What kind of things need to be deducted from the rent I will receive to get to this net rent figure?

Many thanks!!!

Simon

Starrystarrynight

You can deduct mortgage interest. Can't remember the other things, but I'm sure someone with a better memory than me will be along shortly.