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What expenses im i allowed to deduct for a property business for tax purposes

What expenses im i allowed to deduct for a property business for tax purposes

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    The range of items that can be deducted from rents received include the following:
    • Legal fees for drawing up tenancy agreements or collecting debts, but not those
    connected with acquiring properties;
    • Letting or managing agents’ fees;
    • Accountancy fees for drawing up the property business accounts;
    • Advertising for tenants;
    • Gardening, cleaning, and security services where relevant;
    • Motor expenses for travelling to the property (see below);
    • Ground rent and service charges for leased property;
    • Wear and tear or renewals allowance (if the property is let furnished);
    • Maintenance and repairs (see below);
    • Buildings and contents insurance;
    • Interest paid on loans used to fund the property business (see below);
    • Water rates and council tax;
    • Heating and lighting costs.

    You can only deduct the last two items from the rents received if the letting agreement does not make the tenant responsible for paying these charges. The liability to pay council tax normally falls on the individual residing in the property, but if the property is empty or is a property in multiple occupation,the landlord may be required to pay the council tax. If the tenant pays the council tax or utility bills then you cannot also claim a tax deduction for those same costs.

    There following are non-allowable expenses and you can’t deduct these:

    ‘capital’ costs, such as furniture or the property itself
    personal expenses – costs that aren’t to do with your letting business
    any loss you make when you sell the property

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