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Posted Sun, 10 Jul 2022 17:42:44 GMT by ritchieA
Dear Sir/madam, I currently file self assessment for rental income, last year I paid for council tax for my rental property during periods of vacancy whilst finding new tenants using my personal Santander 123 account, which gives you cash back of up to 1% or £5 max a month if you pay 2 pounds a month fee and have at least 4 direct debits coming out of that account. Its a small amount, maybe 10-20 pounds over the year, but is cashback like this non-taxable or would I have to list it as income or deduct the amount from the bill of council tax? Similarly, this year I received council tax rebate of £150 for the property too as I had still been paying the council tax in april, is that taxable/I need to take 150 pounds off the council tax bill as an expense? Many thanks. 
Posted Tue, 12 Jul 2022 11:02:40 GMT by HMRC Admin 17

Hi,
 
Cashback rewards are not taxable.

You can deduct the rebate amount from the total for this year.

Thank you.
Posted Sat, 16 Jul 2022 13:23:47 GMT by ritchieA
Thank you for your response, By deduct the rebate amount, you mean that for example I paid 500 pounds for the council tax bill this year, but I got 150 pounds rebate from the council, on my self assessment, I would put 350 down as the expense for rent rates category. (So instead of claiming 500 as expense, I would just claim 350). Many thanks
Posted Tue, 19 Jul 2022 07:55:16 GMT by HMRC Admin 17

Hi,
 
That's correct  .

Thank you.
    

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