Dec 2011 Expenses & allowances on income from Property – by SGG Accountants

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This month an experienced Accountant, Mrs Sue Grosvenor shared sound advice & tips for our property investors :

Expenses and allowances on income from UK Property

If you let out property you can deduct certain expenses and tax allowances from your rental income to work out your taxable profit (or loss). If you have several UK residential lettings you pool the income and expenses together.

Allowable expenses
The expenses you can deduct from letting income include:
• letting agent’s fees
• legal fees for lets of a year or less, or for renewing a lease for less than 50 years
• accountant’s fees
• buildings and contents insurance
• interest on property loans
• maintenance and repairs to the property (but not improvements)
• utility bills (like gas, water, electricity)
• rent, ground rent, service charges
• Council Tax
• services you pay for, like cleaning or gardening
• other direct costs of letting the property, like phone calls, stationery, advertising

If you’re running a small business, often the accounts side is an area that you don’t have enough knowledge or experience in and it becomes a time consuming burden. We’re here to offer you whatever help you need with your book-keeping and administration.

Many thanks to Sue for this article on behalf of Solaris Properties, – and if you don’t have a book keeper then now would be a good time to get one! For details of this service please contact Sue Grosvenor at SGG Business Services on 07710528171 or visit our website at www.accountsandadmin.co.uk, email sue@accountsandadmin.co.uk

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Partners: Solaris prepare Associations: Federation Small Business