which tax year...?

Sep 08, 2003 1 Replies
A

Hi all,



I let 'flat 1' in march 2003.



I refurbished 'flat 2' from mid 2002 to 6 apr 2003 when it was let.



Do I put the receipts for 'redecoration' materials for 'flat 2' into the equation on my current self assesment form, or save them for next year when 'flat 2' has some rental income against which to offset it?



Also, can I put say 10% of my car running costs [fuel tax insurance etc] against my rental income...I do run between flats sorting things out and keeping them tidy.



Can I claim window cleaning and grass cutting against the rent?


thanks in advance...



Andy


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D

No, a mileage allowance is not claimable, as it includes an element of capital cost and only revenue costs are allowable - see para 234 of IR150 "Taxation of Rents: A guide to Property Income". So, 10% of the car's running costs may be the correct claim.

Income and expenses have to be allocated on the "earnings" basis - irrespective of the date of payment etc. If the rental accounts are drawn up for a period other than 5 April (or 31 March, by concession), the profit will need to be apportioned to the correct tax years on a time basis.

Pre-rental expenses can be only for up to 7 years prior to commencement, subject to certain rules.

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