Landlord - Tax offset

GTRMAN

I am a landlord and need to complete my self assessment for the first time.

What expenditure can I submit to reduce my tax bill, i.e. maintenance , insurance etc.

Any help would be much appreciated.

runninglea

Repairs, house insurance, interest on mortgage (if any), management fees (if you dont manage it yourself), travel to property, gas certificates etc

GTRMAN

Can I claim for wear and tear to items in the property, i.e. furniture and if so how much.

runninglea

I think it is 10% of the value if you are letting the property furnished

CLAPTON

you can claim 10% of the rent for wear and tear

GTRMAN

Ah great thanks for that, and is it 10 per cent for maintenance if its managed by me...?

Also can I claim for anything else, I obviously want to reduce the amount down as far as possible.

How much can you claim before tax is due...?

CLAPTON

GTRMAN wrote: »

Ah great thanks for that, and is it 10 per cent for maintenance if its managed by me...?

Also can I claim for anything else, I obviously want to reduce the amount down as far as possible.

How much can you claim before tax is due...?

no, it's not for maintenance (that is separate) it's for furnishings wear and tear


you pay tax on the profit, that is the difference between your rental income and allowable expenses


I would strongly suggest to join a landlords forum that specialising it this sort of thing.

00ec25

GTRMAN wrote: »

Ah great thanks for that, and is it 10 per cent for maintenance if its managed by me...?

Also can I claim for anything else, I obviously want to reduce the amount down as far as possible.

How much can you claim before tax is due...?

there is a specific method you must use to calculate the 10% - it is not just 10% of the "rent"

given you appear not to know even the basics don't you think you really ought to get an accountant to do your first return so they can make sure all is correct and everything allowable is claimed?

if you want to learn it yourself start here
http://www.hmrc.gov.uk/manuals/pimmanual/index.htm

GTRMAN

Thanks I am sure I can manage to complete myself just wanted to check what I can and can't claim for.

GTRMAN

One last question. How does this affect the sale of my property if indeed one day I do actually sell it....?