Property Expenses

Dear HMRC, I have a residential property newly let out. I need to pay the letting fee or a commission to the agent. Can I deduct the letting fee or commission as a property expense? Pls comment. Thanks.

Hi mkcchan,

Thank you for your question.
Letting agents fees and management expenses are deductible expenses from your rental income.

The following link provides guidance on allowable expenditure:

Work out your rental income when you let property

Thank you. 

Hi HMRC I would like to enquire if the household expenses, eg electricity bills, can be are deductible expenses from your rental income.

Hi,
 

Thank you for your question. I would advise that once a rental business has commenced, household expenses such as electrivity bills may be claimed as an expense, however, before the commencement of the rental business, these would unfortunately be incurred at your own expense . Further information is held on the following pages: Property Income Manual   and Work out your rental income when you let property  . Thank you  .

Dear HMRC, I have a property advertised for letting for a long time and only let out successfully until in the last 3 months of the tax year. May I claim all property expenses in the entire tax year? or Should I only claim the expenses in that 3 months? Pls comment. Thanks.

Hi mkcchan
Thank you for your question. 
If the property is empty for part of the tax year and you were actively seeking a new tenant then you can claim any expenditure incurred during the vacant period as long as it was wholly exclusively and necessary.

Hi HMRC, I didn't rent out my property in 21/22 tax year and began renting it again in Oct22. During this time I was undertaking maintenance and repair to enable the property to be re-let. I was doing much of the work myself hence the time period. Can i claim the expenses in this (22/23) tax year? They included replacing the guttering as it was leaking, repairing the window frames where they were rotten and fixing two broken panes, repairing and replacing kitchen doors where water damage had occurred all of which would not have been possible with sitting tenants. I noticed in your guidance that you can claim for expenses incurred in preparing a property for rental and between tenants which this was. I also noticed that you can claim losses after you have stopped renting and re-rent again within 3yrs. Would the above fall into one or both of these categories? I have started to complete my return and i've got flagged that the expenses are high compared to the income - as these expenses are offset against half a year's rental income. Is this ok? Thank you.

Hi tableandchairs,
Please to Property Income Manual PIM2510  which covers a letting that ceases which later re-commences and losses.  
You would need to consider the facts set out, in your circumstances it is possible that your business had not ceased but was temporarily unavailable while work on repairs or alterations were carried out.
You can claim expenses for the property repairs when declaring your rental income for the 2022-23 tax year, we would suggest that you retain receipts/invoices of your repairs if required at a later date.
Losses can only be carried forward and set against future profits of the same business, this is dependent on whether the original business resumed or there had been a cessation followed by a new business commencing, so if you are treating it as a temporary pause then losses would be allowable. 
Thankyou.