Relief on Buy-to-Let

lsjhoa

Hi All,

Does anyone know whether there is a definitive list on what you can claim back on a buy-to-let? I mean, can you claim back the following:

Car expenses in looking for a property
Locks for the doors
Tools

Does anyone know where I can find out about what I can claim back.

Thanks in advance,

Lsjhoa.

clutton_2

the inland revenue has a booklet on "Taxation of rents" - it tells you exactly what you can claim - and i dont think you can claim petrol whilst looking for a house, and if the tools are for exclusive use of your BTL business you might be able to claim them, but only if you are doing your own maintanance -- bit difficult that one !!!

mustrum_ridcully

IF memory serves me correctly only expenses incurred whilst a property is being let can be claimed for tax purposes.

clutton_2

purchase and sales costs are generally taken into account on sale and offset against CGT

IveSeenTheLight

You can claim loads of things to offset against any tax you owe: -

Maintenance, advertising fees, solicitor fees, estate agent fees, gas certificate, electrical certificate, in fact any services, interest on the mortgage payments.

Please also bear in mind that if you make a loss you can roll over for up to 5 years

Good Luck

lsjhoa

So I can claim back solicitor's fees for the purchase of the property or only when / if I need one for the tenancy agreements?

Also, you said that I can claim back money relating to letting agents fees, gas check, electrical check, etc - now is this the whole amount or only the tax on these services?

Thanks,

Lsjhoa.

Gorgeous_George

Hi

You add up the income i.e., rent. For example £5,000.

You add up allowable expenses such as 10% of the rent for wear and tear, mortgage interest, travel costs, letting fees and loads of other stuff. Maybe £4,000.

You subtract the costs from the income. So, £1,000 in my example and add this to your total income for the year (i.e., add salary, interest on savings, pension income etc.) and pay tax on this amount at whatever rate it attracts based on your personal allowance.

If you make a loss, you do not pay tax and roll the loss over to the next tax year.



GG

Running_Horse

Did you claim back the fees?

clutton_2

only just spotted this little naive gem " I can claim back money" - i'm sure this poor deluded soul thinks someone somewhere in the tax office will pay her money for being a landlord ....

PasturesNew

I've been following running horse asking his little questions all evening.
It's amusing me immensely.