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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6878
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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If I rent out my own and only flat in London, I understand I

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If I rent out my own and only flat in London, I understand I need to income tax.What can I tax deduct against the rental income? Eg depreciation of the property? Mortgage payments?

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Many thanks

Thank you for your question.

Expenses that are allowable against rental income:

- general repairs and maintenace

- utility bills

- letting agent's fees

- replacement of white goods

- service charges

- legal and professional charges including accountant's fees

Depreciation of property is not deductible

Net profit from UK property would be taxed at your marginal rate. If you are a higher rate taxpayer then you pay tax on rental income at 40%

Finally, mortgage interest relief is restricted at basic rate of 20%.

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