As the new Financial Year is well and truly in motion, it serves as a timely reminder to taxpayers of what exactly they can or can’t claim as part of their rental property deductions. From the last Budget, the following changes came into effect:
Previously landlords were able to claim all travel expenses to inspect, maintain or collect rent, however from the 1st of July 2017, these expenses have been disallowed as a rental deduction. The measure was introduced to combat taxpayers claiming private travel for a tax deductible purpose.
In addition, where landlords could claim depreciation on assets (i.e dishwashers, cookers, range hoods etc.), from 9th May 2017, it has been limited to the first owner (brand new properties and assets). So if you purchase an existing property for rental purposes, a quantity surveyor report for capital works (the dwelling) can now only be claimed as a deduction. However fret not, investors with existing properties and assets before and up to 9th May 2017 can continue to claim depreciation deductions.
If you require more information on the deductions you can or cannot claim, please contact one of our friendly accountants at HQB Chartered Accountants.
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.