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What Tax relief can I claim on property repairs?

This is a very common question we receive from landlords and we totally understand why. You can claim for a revenue expense but not a capital expense, we will give you a few examples.

 

For an expense to be allowed (revenue expense) it has to be an exclusive result of renting out a property. For instance, property repairs on the rental property, decorating between tenancies, utility bills (if you pay them rather than the tenant) and service charges can be deducted from your rental income as a landlord to help reduce your tax bill.

 

Expenses which can’t be deducted from the rental income (capital expense) would be such as property improvements. This can be confusing as we have already stated you can repair the property. The legal side advises you can replace like for like due to wear and tear or damage, for instance a shower as long as it’s like for like but you’re unable to replace with superior items as this would be a property improvement. Any upgrades or building work which would increase the property value cannot be claimed as an expense but you may be able to claim capital expenses against Capital Gains Tax if you later sell the property, so keep records of all such capital expenses.

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