Allowable expenses re: lodgers.

bundly

On this page

http://www.hmrc.gov.uk/manuals/pimmanual/PIM4030.htm

it mentions in the examples landlords being allowed to deduct expenses from the rental income from their lodgers. However, I cannot find any list of

(a) what items qualify as allowable expenses in these circumstances, or

(b) what percentage of those expenses can be claimed

Does anyone know where there is a list or more info from the tax office? I have searched for hours for this info and cannot find it.

To be clear: the situation here is a live-in landlord with three lodgers, income from those rents is £12,000 and thus exceeds the Rent-a-Room Scheme limit.

I posted this also on the landlords' forum but thought it prudent to ask tax experts.

Thank you.

anselld

The fact that income exceeds RaR amount does not stop you claiming it if it gives a better result than the traditional calculation. But it is either-or.

The RaR option will become a more attractive option when it increases to £7500 and as the restrictions to mortgage relief kick in.