If you are a new landlord you will undoubtedly be looking to maximise your rental income. Therefore, when it comes to doing work on your property it is important to know what is tax deductible versus what isn’t. This quick guide to tax deductions for landlords divides property work into three categories.

replacing boiler

Fixtures and fittings

HMRC’s approach to the cost of replacing boilers, water and light fittings, etc. is that they are repairs to the building. Therefore, the costs of replacing them is usually tax deductible from rental income.

house extension

Structural improvements

Costs incurred on improving or changing the structure of the properties, e.g. knocking down walls, converting lofts etc, is not tax deductible from rental income. Instead, it can be deducted when working out any capital gain or loss when the property is sold, as long as the improvement is still there at the time of sale.

fixing windows

Repairs and redecoration

Normally, the cost of repairs and redecoration is tax deductible from rental income.

If you are a landlord unsure of the tax approach you should be taking before undertaking work on your property, give us a call on 01273 491112 or get in touch here and we can happily advise you.