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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4208
Experience:  FCCA FCMA CGMA ACIS
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Hi, Re my buy to let properties. Please can you clarify

Customer Question

Hi,

Re my buy to let properties.

Please can you clarify what admin/management costs (as opposed to repairs/renewals) are tax deductible. e.g

I live in London but my properties are in Bath and Towcester. Can I claim the cost of travelling to visit/manage the properties?

Whilst making those visits are costs such as overnight accommodation, meals etc tax deductible (if those visits are solely for the purpose of managing the buy to let property)?

Can I claim sundry costs such as postage, stationery, photocopying phone calls, if they are solely connected to admin of the properties?

Thanks
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question.

 

Sorry for the delay, but another expert had it locked. All the costs you mention providing they were wholly and exclusively for property management would be allowable against IT (please see the answer to your last question). However the travel expenses should be carefully managed and evidence kept that they are entirely expended wholly and exclusively for property management purposes. HMRC might well look askance at weekly jaunts! HMRC might also adopt the not unreasonable view that it would be cheaper to employ a local letting agent that make visits and they are there, in part, try to maximise revenue for HM Government! The key case in this area is Horton v. Young where it was held that as the business was carried on from his home the taxpayer was entitled to travel from there to his properties and offset the expense against IT. Have a look at 'Claiming Travel Costs in Property Rental Businesses.' It's on Tax Insider and gives an excellent guidance and is frightfully comprehensive setting out exactly what you can claim against rental income for IT purposes. I urge you to have a look at it.

 

I do hope I have helped you in your query and have been delighted to help.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.