Property expenses (rent, repairs, legal fees, cost of services provided)
Generally, you can claim the running costs of your letting business but you cannot claim, as property expenses, any capital costs such as expenses relating to the purchase or sale of, or improvements, additions and alterations to, land or property or the costs of purchasing machinery, furnishings or furniture. But you may be able to claim capital allowances or a renewals deduction.
Please include all your allowable property expenses. Allowable expenses may include:
- rents, rates, insurance, ground rents etc
- property repairs and maintenance
- renewals - although you cannot claim these and capital allowances or the 10% wear and tear allowance
- interest and other finance charges
- legal, management and other professional fees
- costs of services provided, including wages
- other property expenses
You cannot deduct:
- Expenses incurred in connection with the first letting or subletting of a property for more than a year. These include legal expenses such as the cost of drawing up a lease, agents' and surveyors' fees and commission.
- Any costs of agreeing and paying a premium on renewal of a lease.
- Fees for planning permission or registration of title on property purchase.
For further information, please see:
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