Are you claiming all your buy to let tax allowances?

If you are relying on a buy to let investment to provide an income, you need to make sure that you are realising the largest possible return. So it makes sense to ensure that you are claiming all of your buy to let tax allowances.

Mortgage interest

Any interest you pay on the mortgage used to purchase your buy to let property is tax deductible. For many properties this will be the largest annual expenditure, and equally the biggest potential allowance, so don’t pass it up!

Council tax

Just like any other property in the UK, your buy to let premises will be liable for Council Tax. Keep records of your annual bill and then deduct it from your annual tax return.

Property and contents insurance

As the owner, you are probably paying for property insurance in case of disaster. If you are letting a furnished home or office, you should also have contents insurance in place. Both these costs are fully tax deductible.

Management fees

Any fees you attract marketing or administering the property are also tax deductible. Estate agency fees, accountant fees and any advertising costs can be claimed back on your buy to let tax return.

Incidentals

Other costs incurred managing your property are also deductible. Keep track of incidentals like postage, stationery and phone calls associated with the property, ready for your annual buy to let tax return.

For full details of the monies you can claim, speak one of our specialist landlord accountants here at 3 Wise Bears.