The way through which landlords can legally claim for tax relief through ‘wear and tear’ on their buy-to-let properties has changed in the past few years, and while this has meant keeping receipts, there are still a few avenues you can use to claim back ‘allowable expenses’ for the year – meaning that it’s not all looking so bad on your end of year return. Accountants in Uxbridge such as Finsol Tax Advisors will be able to confirm these with you, but here are five useful property tax relief areas within the ‘wear and tear’ umbrella you may not be aware of when it comes to filing your singular or partnership tax returns.
Utility Bill Expenditure
Day to day running of a property that doesn’t fall under tenants’ use can now be recorded and submitted for relief approval. This means gas, electricity and water usage are all covered if no one’s occupant.
Council tax can be a huge financial drain on a landlord without a tenant – and the good news is that the government will allow you to reduce costs based on any council tax you may have paid during the year.
Costs of Letting the Property
This means that, providing you have record of any calls made, agency fees paid and so forth, you’ll be able to itemise your efforts in letting your property under ‘wear and tear’.
Buildings and contents insurance can be itemised under the ‘wear and tear’ umbrella if you have needed to claim or protect – beyond tenants’ remit, of course.
Anything That Isn’t ‘Capital Expenditure’
This essentially means that you can submit records for tax relief if you’ve needed to bring a home up to code or kept it legally running while awaiting tenancy – providing the work done is necessary to reduce wear and tear.
If you’re a landlord or are new to buy-to-let, file partnership tax returns or need accountants in Uxbridge to help analyse your affairs, let Finsol Tax Advisors be the support you need!