Allowable Expences On The Tax Return Q

[cassa333]

Hi,

I am filling out my tax return and I don't know if the morage interes is an allowable expence for a rental property.

I've tried looking on the hmrc web site but there is so much on there I can't see what I need to find :( In fact I tink I found it and still can't understand :( :( :(

Morgage interest on rental properties used to be an allowabe xpence or was taken off the income somehow but can't figure it out riat the moment.

Can anyone enlighten me please?

Thanks you

[ummmm]

Go to your local tax office. They are really helpful.

[Peter Pedant]

Good Girl for doing it early !

Yes it is

It should be there on the site but I know it is
The interest amount should be included on the bank statement for the mortgage that you get on the anniversary of taking it out.

So if it is June to June for example - repayment mortgages means the interest amount goes down year to year - then yo take Apr-May-June from one year ( 3/12) and 9/12 from the following year
to get an April to April amount
I think this is called amortisation

other expenses - legal, maintenance but NOT improvement. Insurance, and that is about it ( running expenses whilst empty )

[Peter Pedant]

or go here
http://www.which.co.uk/money/tax/guides/tax-on-property-and-rental-income/allowable-expenses-and-allowances/

[Retrochic]

On your personal tax return when you tick the 'have you any property in the uk' box a separate sheet will come up if you are on line or if youdo a paper copy you will have to either download the form or ring the tax office to get one. Mortgage interest on a buy to let mortgage is tax deductable and is an allowable expense, as is any maintenance, agency fees etc.

[Peter Pedant]

HMRC having made it incomprehensible
know it is incomprehensible
and have published this ....
http://www.hmrc.gov.uk/agents/toolkits/property-rental.pdf

[Peter Pedant]

punish yourself and read this !

http://www.hmrc.gov.uk/manuals/pimmanual/PIM2050.htm