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Buy to Let Investment - Tax deductible expenses
fierydormouse
Posts: 12 Forumite
Hi there
We have a Buy to Let investment house which we bought in March this year.
I am trying to get an idea of what expenses will be tax deductible when we are paying tax on the rental income, once we get it let out. We have been doing the house up but I believe most of what we have done WILL be allowable as hardly any of it is "improvement" and nearly everything is just replacing/maintaining what was already there. This is my impression from a page on HMRC's website (which the forum won't let me post here unfortunately...)
The property was in a condition where it could have been let straight out when we bought it, had we wanted to. We are only repairing/replacing what was already there. So I am of the opinion that a lot of what we are doing will be allowable (for e.g. painting and decorating, servicing boiler, replacing worn kitchen units, replacing a dodgy macerator pump, replacing rather old fencing, and so on). The house will be largely the same when we finish, just with a nicer and newer finish. No building work or anything like that is happening.
So I was feeling quite happy about all this, when on a random accountant's website (the link of which I can't now find) it said that maintenance costs while there was a tenant in there were allowable. Which to me implies that work done while the house is untenanted might not be allowable? Does anyone know if this is the case?
Also, when it comes to council tax, utilities, insurance etc, what of this is allowable, if any, while the property is empty?
Many thanks in advance for any help. Sorry if anything I have said is unclear.
We have a Buy to Let investment house which we bought in March this year.
I am trying to get an idea of what expenses will be tax deductible when we are paying tax on the rental income, once we get it let out. We have been doing the house up but I believe most of what we have done WILL be allowable as hardly any of it is "improvement" and nearly everything is just replacing/maintaining what was already there. This is my impression from a page on HMRC's website (which the forum won't let me post here unfortunately...)
The property was in a condition where it could have been let straight out when we bought it, had we wanted to. We are only repairing/replacing what was already there. So I am of the opinion that a lot of what we are doing will be allowable (for e.g. painting and decorating, servicing boiler, replacing worn kitchen units, replacing a dodgy macerator pump, replacing rather old fencing, and so on). The house will be largely the same when we finish, just with a nicer and newer finish. No building work or anything like that is happening.
So I was feeling quite happy about all this, when on a random accountant's website (the link of which I can't now find) it said that maintenance costs while there was a tenant in there were allowable. Which to me implies that work done while the house is untenanted might not be allowable? Does anyone know if this is the case?
Also, when it comes to council tax, utilities, insurance etc, what of this is allowable, if any, while the property is empty?
Many thanks in advance for any help. Sorry if anything I have said is unclear.
0
Comments
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Book an appointment with a local accountant (fees will be tax deductible) and understand\learn the rules fully from the outset.0
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either do what Thrugelmir suggests or do a whole heap more reading of your own starting here as you will have to apply most of it in detail:
http://www.hmrc.gov.uk/Manuals/pimmanual/Index.htm.
and in respect of your question - make sure you read the 9th topic !0
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