Buy to Let Tax/What costs can be offset against tax

dezguffry

Hi, I'm new to the site, so please be gentle.

I am in the process of filling in my self assessment tax return for 06-07. I want to double check I am claiming for all the tax relief I am entitled to and more importantly not claiming for anything that is not allowable. I would be grateful if anyone can suggest any websites or threads within this site that may help me through this mine field. Otherwise its am expensive trip to an accountant. I own two buy to let properties, one which was purchased in the 06-07 tax year. I am in full time employment.

Which of the below can be offset as costs against income. And have I missed anything.

1. Mortgage payments (interest only mortgage)
2. Legal cost relating to purchase of the property
3. New carpets and flooring for the property
4. Trades men costs
5. Receipts for materials and fixtures purchased for the property
6. Arrangement and other mortgage related fees
7. Estate agent costs for finding/ managing tenant
8. Petrol receipt for travel related to property
9. Cost for re-mortgage on other properties to raise capital for purchase of buy to let.
10. Mortgage payments made in any tenancy void.
11. Any utility bills, service charges, council tax, insurance etc paid by myself relating to buy to let property.

Thanks in advance to anyone who responds.

CLAPTON

you need to distinguish between the 'initial' or capital costs of buying and improving and furnishing the property which are allowable against future CGT but not against rental costs
and 'maintenace ' type cost which are allowable against rental income

a good start is this govenment site

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/index.htm