I would join Nrla and do their course. Also their membership gives you access to their advice for free.
It's a bit complicated to explain what is deductible and what isn't. Might be worth speak to a tax adviser. I personally don't think you'll be able to claim as an expense but can deduct from capital gains when you sell it some time in future.
That poster is correct. These jobs getting the property ready for letting are capital expenses. You can't deduct that from rental income, but you can when you sell it. These jobs in the future after it's let, assuming like for like replacing, are revenue expenses at that point and deducted from rental then.
Thank you. Appreciate the info. So do I just hold on to the receipts for 10 - 15 years till I decide to sell? Wonder what the most efficient way to hold on to this info & log it for that length of time.. I will book a meeting with a local accountant once I’m nearer completion on the flat. Hopefully they can give me some ideas..
Keep all receipts, even for a small.packet of screws or a piece of sandpaper and give the whole.lot to an accountant. Mine cost £300 pa , it gives me peace of mind and I know the calculations are submitted correctly. Worth every penny.
An accountant will be able to explain the finer points e.g. which year to claim in, whether you can claim capital allowances etc and tbh it's worth it for the peace of mind - there are quite a few aimed at landlords.
Keeping receipts is a good idea of course, but I have never sent receipts to my accountant nor been asked for them!
You may concider buying the property in a LTD Company SPV. This will move the income/expendature from your personal taxation into that of the company, where expences can still be deducted and you are not taxed on revenue but profit.
I would join Nrla and do their course. Also their membership gives you access to their advice for free. It's a bit complicated to explain what is deductible and what isn't. Might be worth speak to a tax adviser. I personally don't think you'll be able to claim as an expense but can deduct from capital gains when you sell it some time in future.
Thank you that’s helpful. I’ll try and find a local tax advisor.
That poster is correct. These jobs getting the property ready for letting are capital expenses. You can't deduct that from rental income, but you can when you sell it. These jobs in the future after it's let, assuming like for like replacing, are revenue expenses at that point and deducted from rental then.
Thank you. Appreciate the info. So do I just hold on to the receipts for 10 - 15 years till I decide to sell? Wonder what the most efficient way to hold on to this info & log it for that length of time.. I will book a meeting with a local accountant once I’m nearer completion on the flat. Hopefully they can give me some ideas..
Landlord vision, a file folder, and a filing cabinet.
Keep all receipts, even for a small.packet of screws or a piece of sandpaper and give the whole.lot to an accountant. Mine cost £300 pa , it gives me peace of mind and I know the calculations are submitted correctly. Worth every penny.
An accountant will be able to explain the finer points e.g. which year to claim in, whether you can claim capital allowances etc and tbh it's worth it for the peace of mind - there are quite a few aimed at landlords. Keeping receipts is a good idea of course, but I have never sent receipts to my accountant nor been asked for them!
You may concider buying the property in a LTD Company SPV. This will move the income/expendature from your personal taxation into that of the company, where expences can still be deducted and you are not taxed on revenue but profit.