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Posted Mon, 11 Nov 2024 14:52:52 GMT by ASH4M
I would appreciate clarification regarding how to treat a house insurance policy excess payment, that I paid on a landlords buildings insurance policy (following a home insurance claim) on a house that was rented out at the time of the claim and continues to be rented out. The property is in the UK and not a furnished holiday letting. I use cash basis. I am not claiming property income allowance. I have not lost any rents during this process. During tax year 2023-2024 - I paid the house insurance policy excess (£1000) to the insurance company for a claim relating to subsidence at the rented out property. In May 2024 (tax year 2024-2025) the insurance company issued a cash settlement payment to me by cheque to settle the claim. They informed me that any repairs would need to be arranged by myself - they did not directly pay for or arrange for any of the repairs to be carried out by their contractors. Following receipt of the cash settlement insurance payment, I have started the repairs in tax year 2024-2025. I will declare the cash settlement payment from the insurance company in the self assessment form for tax year 2024-2025. I will also declare the property repair and maintenance costs incurred at the rented out property in the self assessment form for tax year 2024-2025. I have read that property and contents insurance may be claimed as an allowable property expense as this is a running cost for my rental property. I could not see guidance as how to treat excess payments specifically. My question is this: Please advise if this additional "policy excess payment of £1000" may also be claimed as an allowable property expense when filling out the self assessment form for a rental property UK for tax year 2023-2024. Thank you for your guidance regarding how I should declare the policy excess payment. Kind regards
Posted Tue, 12 Nov 2024 10:51:39 GMT by HMRC Admin 33
Hi,
Thank you for your question. As the excess payment was in relation to your rental business, you would be able to claim the £1,000 as an expense, followed up with the repairs also claimable if they are of a revenue nature, and not capital.
Thank you

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