Landlords...here at Clear Property Investment we're focusing on income tax - and the friendly deductibles.

As a Landlord the rent you receive from your tenant is taxed as income (as you're probably well aware). Whereas if you sell your property you will, of course, usually be subject to Capital Gains Tax. 

So, let's take a look at what you can claim back against tax under the 'Revenues Category'

  • Repairs - this also covers maintenance, your accountant/solicitors fees and any interest you've had to pay against your property
  • Fees - those paid when preparing a tenant's lease or your annual accounts bill
  • Household Bills - do you work from home? Then, like any other home-based business, claim electicity/gas/telephone/insurance/council tax and repairs costs (but not too much - you don't want to be hit by CGT!). You can usually claim a quarter of your outgoings but this depends on the size of your property
  • Your Car - are you continually driving to your property to show around prospective tenants? Then claim for petrol and depreciation. Also, is your property so far away that it requires an overnight stay? Then you can also write off your hotel accomodation and food
  • Information - do you buy a lot of books or magazines to keep on top of what's happening? Or maybe you like to attend the odd seminar? Well, these are tax-deductable too (although this is a tricky one - the information has to be new!)
  • Restoration - don't get this confused with 'enhancement'. If it's an extension you've built on your property it comes under Capital Tax. If, on the other hand, it's maintenace to an existing feature ie repairing those sash windows, then you're looking at the Revenues category
  • Furniture - look at claiming for 'wear and tear' if your property is furnished. If it's unfurnished, you should consider 'renewal and replacement' fees
  • Anomalies - well, we never said it was simple! The occasional Capital occurance can be written-off as income tax such as cars and office equipment, provided they are used solely for the benefit of your business

The above is meant as guidance and all-round general information for what you can claim. For more detailed advice though, we at Clear Property Investment suggest you either contact us for further advice (whether you're a client or not) or get an accountant on board. Knowledge pays!

View other news from June 2010