What are Allowable Expenses?

If the asset based in the UK is used to generate an income, then tax is payable on the NET PROFITS. So for example a trip to the UK to purchase or inspect a property is tax deductable (but not a side trip for recreational purposes).

There are a number of costs you can claim to reduce tax on residential rental properties. The following list includes some of the items but is not exhaustive.

Fees from your letting agent

• Legal fees (for certain leases)
• Accountant’s fees
• Buildings and contents insurance
• Loan interest
• Maintenance and repairs (improvements are excluded)
• Utility bills
• Service charges such as ground rent and other building service charges
• Council Tax – payable by the occupier (tenant or owner). If property is empty, owner pays.
• Other elected direct costs