Q: I have paid out expenses on my rental property but I do not have a tenant yet, can I claim these?

A: Usually the rental business does not begin until the first property is let. Any expenses incurred before the first let must be solely for the rental business and must not be capital expenditure. Any qualifying pre-letting expenses are treated as incurred on the day the rental business commences, which to confirm, is usually the day the property is first let. After the first property has been let, any later expenditure leading up to the letting of the second and later properties is part of the rental business and can be deducted - provided it is incurred wholly and exclusively for the purpose of the business and isn’t capital expenditure. For further information, see Property income manual 2505.

Q: My rental property is quite a long way from where I live. Can I still claim travelling expenses for my visits to the property?

A: Where the sole purpose of the journey is for your rental business, then this will generally be allowable. However, if the journey has a dual purpose, for example you also go shopping or visit relatives, then none of the travel expenses will be deductible. I would definitely recommend you look at the guidance here. Property income manual 2220.

Q: Can I claim the simplified mileage rate (45p per mile) for travelling to my property?

A: From 2017/18, landlords can choose to use a fixed rate mileage deduction rather than deducting actual running costs and claiming capital allowances. The rates per business mile that can be claimed are: 45p per mile for the first 10,000 miles and 25p per mile thereafter. Please refer to the guidance at PIM2220 Property income manual 2220.

Q: Can I claim any costs for running my letting business from home?

A: Where a landlord genuinely runs the rental business from home they may claim the extra business costs that they incur - such as the cost of extra lighting and heating. Where a specific part of their home is used exclusively for running the rental business for a significant amount of time, then a proportion of all fixed expenses referable to that room may be deducted. Further information can be found at Property income manual 2100.

Q: I am in-between tenants and I am paying council tax on my rental property. Can I claim this as an expense?

A: If the landlord pays council tax or other costs such as utilities because they are in-between tenants, then these will be allowable to the extent they are solely for the purpose of the rental business. For further information, please see Property income manual 2140.

Q: I’ve had to obtain a mandatory landlord’s license from my local authority is the cost deductible from my rental income?

A: The fee charged by a local authority for a mandatory landlord’s license is usually an allowable deduction.

This message was edited 1 time. Last update was at 16/08/2018 09:51:07