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Posted Mon, 03 Aug 2020 11:55:29 GMT by Rodentic Brunette
I'm a residential landlord and rent three rooms in my house. Last year I moved the lodgers out for 9 months while I carried out building work. I estimate that 20% of the work was for repairs and 80% was for improvements. So I am guessing that I can claim 20% of my council tax and utilities, and 20% of the building costs, during these nine months as expenses against my income. Is this the right approach, can you tell me? I will probably use the "Method A" system of calculation, ie., actual profits, instead of Rent-A-Room allowance. Thank you for any advice on this. R
Posted Tue, 04 Aug 2020 11:33:18 GMT by HMRC Admin 5
Hello.

Thanks for your question. 

You would not be entitled to claim any of the improvement work as expenses because they do not meet the 'Wholly & excusively' rule. 

Please see the following link for further guidance on this.

Property Income Manual

 
Posted Wed, 05 Aug 2020 17:12:21 GMT by Rodentic Brunette
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Posted Fri, 07 Aug 2020 12:42:45 GMT by HMRC Admin 10
Hi

Provided the 20% of the expenditure incurred for repairs was wholly and exclusively for the rental business, then this can be claimed as an expense.

Council tax may also be claimed as an expense as long as the amount claimed was wholly and exclusively for the rental business.

I have attached a link to the guidance at GOV.UK which you may find useful:

Expenses incurred wholly and exclusively for the property rental business

Thankyou.

Regards.

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