can i claim for these expenses?

krazykidskate

Hi,
please could someone let me know if i can claim for these items as expenses when renting out a furnished house - i have the receipts.

new carpets
new rollerblind
spare keys
burglar alarm
wear and tear 10%
also i spent a couple of weeks decorating - is this something to factor in?

I'm not sure if it is one or the other re the new carpets before letting and wear and tear cost at the end of the year. Or maybe i can't claim for either lol.

Would really appreciate help i have read through a guide book and the answer isn't obvious to me.

TIA

Jowo_2

As far as I'm aware, the landlord cannot claim expenses associated with improving and furnishing a property ahead of it being rented out but hopefully other posters can clarify.

The 10% wear and tear gets factored in during a tax return.

Polypops

Hi

I sake similar questions when ringing inland revenue.

You can't claim any of the stuff you have put in before younrent it out however you can claim for the items if they are ever broken or worn.

Other things are
Travel to the property for inspections etc
Phone calls regarding the property
Agency fees
Interest on mortgage.

If you are going to declare that you are gong to rent fully furnished you will have to do that for the rest of the time you rent it out.

If it's unfurnished you have 1 year to decide if you want to furnish it.

Hope this helps a little x

starlights

Claiming interest on mortgage.
Does anyone know if we will be able to claim tax relief on the mortgage interest if the mortgage taken out to buy the property (to rent) is actually a remortgage on our current property? (we will continue to live in)
Thanks

Jowo_2

starlights wrote: »

Claiming interest on mortgage.
Does anyone know if we will be able to claim tax relief on the mortgage interest if the mortgage taken out to buy the property (to rent) is actually a remortgage on our current property? (we will continue to live in)
Thanks

Do verify this but I believe only the mortgage for the particular rent property itself can be offset as a legitimate expense.

The reason I believe this is a friend had two properties (the rental property used to be their home) and was buying a new property but had a really high cash deposit. Their financial advisor organised it so the mortgage remained against the rental property so it was more tax efficient.

starlights

It makes sense really. I could be using the money from remortgaging to go on a world cruise I suppose.
Thank you

clutton_2

i disdagree.. i dont think the source of the money matters as long as it can be paper-trailed to prove that it was/is legitimately used for the BTL

i have remo'd several times and claimed interest as an expense

Jowo_2

clutton wrote: »

i disdagree.. i dont think the source of the money matters as long as it can be paper-trailed to prove that it was/is legitimately used for the BTL

i have remo'd several times and claimed interest as an expense

Thanks for clarifying - any links to the HMRC site to put any doubts aside?

I can't understand why the interest belonging to residential property mortgage where the landlord lives can be offset against the rental income of another property as it seems a conflation of the personal and the business, even if the income the remortgage has freed up was used against the new property.

I put my doubts down about this practice simply because a pal had her finances structured this way, to pay off the residential landlord occupied property and place the mortage against the residential one.

clutton_2

if you remortgage your principal private residence and use that money to buy other BTL property then the interest element of the repayment of the remo money can be charged against the BTL business...

ask on property tribes forum.. there is a great tax guy called Steve posts on there

starlights

Checked with accountant and was told that in order to do this the funds from the remortgage must be deposited with our solicitor (conveyancing, new property) and not into our account. Thanks to everyone for your replies