Letting Agents Sheffield

Landlords are able deduct the costs of running and maintaining their property, ultimately lowering their tax bill.

Common deductible expenses include any repair or maintenance tasks, covering everything from minor repairs to any like-for-like replacement, i.e. the new item must be similar or identical in terms of function, type and quality.

In addition, expenses for servicing and certificates such as an annual gas safety certificate and electrical condition report are eligible.

Examples of eligible expenses you can claim include:

 

•          General maintenance and repairs to the property

 

•          Water rates, council tax, gas and electricity

 

•          Landlord insurance

 

•          Costs of services (incl. the wages of gardeners and cleaners)

 

•          Letting agent fees and management fees

 

Keep in mind: these expenses should be incurred wholly and exclusively due to renting out your property.

There is also a revised wear-and-tear tax relief policy is applicable only when an item is genuinely replaced and is no longer in use within the property. This could include replacement items such as beds, carpets, sofas, fridges etc.

Unfortunately, expenses of a capital nature, like the cost of building an extension or a renovation project improving the property, can’t be deducted from rental income.

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The Horizon Group