BTL - Tax Advice

PierremontQuaker03

Hi,
I will be letting out my property for the first time in Jan-14, so I am just starting to prepare things, I have go my EPC which I believe the cost is Tax Deductable. Also I have the BTL mortgage in place, and the cost of arraning this mortgage I believeI can claim as an expense.
I am getting the bolier serviced next month, can I include this as a cost of my BTL cost for this tax year, and what about other costs, such as repairs and maintenance? Can I go back to other costs for other repairs I have done in the last couple of months?
Thanks

jimmo

The EPC and BTL mortgage are both clearly attributable to the lettings business but the boiler service is not so clear.

If this is a routine annual service and you currently live in the property the cost is part of your normal living expenditure and is nothing to do with future lettings.

However, if the next annual service is due shortly after your anticipated commencement of the lettings business there is nothing wrong with bringing forward the service so that it is done before the lettings commence.

Have you seen this?

http://www.hmrc.gov.uk/manuals/pimmanual/PIM2505.htm

The key words there are “wholly and exclusively” and you need to consider if the boiler service is wholly and exclusively attributable to your lettings business and nothing to do with the fact that you have been living in the house and using the boiler for the last x years.

John_Pierpoint

Have it done at the time the tenant moves in as you will need a "gas safe" certificate to stay legal.