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I own a second property which I rent to my two step-sons.

Resolved Question:

Hi! I own a second property which I rent to my two step-sons. I pay for their utilities (Water, gas, electric) out of their rent. Is this tax deductible, and if using the HMRC online self-assessment service, do I enter the utility amount on their page or pre-deduct it (I hope that makes sense)? Many thanks.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Can you tell me why you pay the utility bills please? Whose name are the bills in?
Customer: replied 1 year ago.
I pay the bills because one of my stepsons is autistic and the other is extremely unreliable with money. All the bills are in my name.
Expert:  TonyTax replied 1 year ago.
Thanks.
Leave this with me while I draft my answer.
Expert:  TonyTax replied 1 year ago.
Hi again.
You should disclose the gross rents your sons pay you and claim the utilities costs as deductible expenses in the appropriate boxes in the SA105 rental income pages which you can find here:
https://www.gov.uk/government/publications/self-assessment-uk-property-sa105
You might also be interested in the notes below on losses incurred on properties not let at a commercial rate. These will only be relevant if you have other rental properties.
http://www.hmrc.gov.uk/manuals/pimmanual/pim2220.htm
I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
That's great. Would utilities costs come under q29 "Other allowable property expenses" ?
Expert:  TonyTax replied 1 year ago.
You could put them there or in the cost of services box.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15753
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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Customer: replied 1 year ago.
Many thanks: that's excellent. That's all thanks!

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