Self Assessment - Expenses for other property income

Goodform

I own a freehold residential property which I have been letting out for over 20years. I use a lettings agent to fully manage the rental and for the last few years the tenant has taken out a 24month tenancy agreement. Therefore every two years I pay a T.D.S fee; legal fee and tenancy renewal fee. However, I am confused by the Legal, management and other professional fees section on the self assessment form which states that you cannot deduct expenses incurred in connection with the first letting or subletting of a property for more than a year. Does this mean that in my case I can not claim the above mentioned costs as an allowable expense? Thank you.

sheramber

Goodform said:

I own a freehold residential property which I have been letting out for over 20years. I use a lettings agent to fully manage the rental and for the last few years the tenant has taken out a 24month tenancy agreement. Therefore every two years I pay a T.D.S fee; legal fee and tenancy renewal fee. However, I am confused by the Legal, management and other professional fees section on the self assessment form which states that you cannot deduct expenses incurred in connection with the first letting or subletting of a property for more than a year. Does this mean that in my case I can not claim the above mentioned costs as an allowable expense? Thank you.

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120

Jeremy535897

What it means is that, when you first let or sublet your property, and the tenancy is for more than a year, you can't claim the associated costs. But you have already been letting your property for years, so your tenancy renewal costs are deductible, however long the lease.
Under the Renters Rights Act, letting to tenants is now basically for as long as the tenant wants. If you are not familiar with all the requirements, you should learn about them now, and certainly before 1 May. I suggest you look at https://theindependentlandlord.com/

Goodform

Thank you very much for your replies and advice