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Housewarming Present
If you are a residential landlord, you normally deduct the expenses of running the property from your income before working out the tax on the profit. You can deduct interest on a loan, but you can't deduct 'capital costs' - the purchase of the house, improvements to the fabric, or the purchase of furniture.
This year, as a 'green' measure, a tax relief has been introduced for expenditure on insulation of houses by individual residential landlords. There are the usual complicated conditions, but you will be entitled to relief on
up to £1,500 per house for expenditure incurred in the five years up to 5 April 2009.
If you were thinking of doing this sort of work, it's a good time to do it. If you did it last year - virtue will have to be its own reward. You won't get the tax relief. If you want advice on what qualifies for tax relief against rent, we will be happy to advise you.
| The new rules are in FA 2004 s.143. The main limitation is that only income tax payers can claim the relief (although there are a number of other conditions which should be consulted before anyone spends money in the hope of obtaining it). |
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