Not all expenses are allowable for tax purposes, when renting out a property.
They must be wholly and exclusively for the property business.
If your total property income receipts are below the VAT threshold (£90,000pa) you can put your total allowable expenses in the ‘other allowable property expenses’ box with the exception of residential Finance costs (mortgage interest). Repayments of the amount borrowed are not allowed.
For non-residential properties, enter the full amount of allowable costs here & don’t show any residential Finance costs on this page.
On the profits and losses for other property income tax return page, enter all your residential Finance costs. In the next box, show any residential Finance costs that you’ve brought forward from earlier years.
Please note you may not be able to show the full amount – check the help guidance link for what to include. You can find out more on gov.uk and watch other helpful videos on HMRC’s YouTube
