What Expenses Can I Claim on My Property?

Your tax liability for rental income is calculated as the Rental Income less Allowable Rent Expenses.  So what expenses are allowable?

Generally, expenses incurred that are exclusively relating to your property and are not a capital expenditure can be claimed.  This is best examined by looking at the main allowable rental expenses.

Allowable Rental Expenses

The most common allowable rental expenses are below.  However, you may have other expenses that are allowable, so keep records and cheap with an accountant/tax professional before you submit your returns

• Ground rent or rates payable on the property
• Water, sewerage or bin costs that are paid by you the landlord
• Cost of any service, such as phone line rental paid by the landlord and not reimbursed by tenants.
• Home insurance, management fees and costs of maintenance and repair
• Legal and accounting fees relating to the rental of the property
• Interest incurred on loans for the purchase, improvement or repair of the property is generally allowed, but this should be reviewed on a property by property basis.
• Most Mortgage Protection policies since 2002.

Changes in allowable mortgage interest in 2009

With regards to loan interest, Interest accruing on or after 7 April 2009 on borrowings used in the purchase of rented residential property will now be restricted so that only 75% of that interest can be set off as an expense against rental income.