Many clients are confused about what expenses are allowable for tax purposes.
Here are some of the allowable expenses –
- Mortgage interest
- Letting fees
- Management fees
- Accountancy fees
- PRTB registration
Other allowable expenses are often overlooked –
- For landlords with multiple units, a reasonable level of motor/travel/phone should be allowable where the landlord deals directly with many tenants in collecting rents etc
- Mortgage protection policies
- Fixtures & Fittings in purchased property – vendor should identify these items and you will be able to claim a tax deduction by way capital allowances on these over 8 years
- Expenditure on significant improvements is not allowable but repairs are – this can be a very grey area and we often help clients with this to ensure they are getting full tax deduction where justified.