What are Allowable Expenses?

What are Allowable Expenses?

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Posted by Gladys Yow MacRae

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
Gladys Yow MacRae
Gladys Yow MacRae