Allowable expenses - property repair

Inspectorlund_2

Hi all

That time of year again. I have a house which I rent out. During the 10/11 tax year, I had some repairs done on it. I paid for these in full, but behind the scenes the insurance reimbursed me for most of it.

My question (and hopefully an easy one) - can I offset the full cost of the repairs against the rental income, or only the amount that wasn't paid by the insurance?

In other words - Repairs cost X. Of this, Y is paid by me and Insurance co pays the other Z. Total of Y+Z = X. Should I declare the repairs as costing X or as costing Y?

Thanks

chrismac1

I think you can answer this one yourself. Let me put it this way - have you been claiming the insurance premiums as an expense item?

ManicMum

I just can not believe this.

I've got a friend who says they are claiming for return car trips from Scotland to London nearly every weekend on a free rail pass. They don't even own a car! This is to offset tax due on rental income. So honest Joe has to pay his whilst others get away with it. Their justification is that with the staff cuts, there won't be enough people to bother checking the small fry.

If you paid out for it, claim it. If you didn't, don't.

lincroft1710

ManicMum wrote: »

I've got a friend who says they are claiming for return car trips from Scotland to London nearly every weekend on a free rail pass.

Tell HMRC.