What Can I Include as Other Allowable Property Expenses?

Why It Matters

Knowing which expenses qualify and how to report them affects landlords’ taxable profits and ensures correct claims under cash-basis versus traditional accounting, reducing the risk of incorrect filings or missed reliefs.

Summary

Landlords may record allowable costs in the ‘Other allowable property expenses’ box if their total property receipts are below the VAT threshold, but residential finance costs are excluded. Acceptable items include stationery, phone bills, business travel and costs for gas and electrical safety certificates. Under the cash basis you can also include limited items like machinery and tools used to run the letting (but not items provided for tenants); a computer bought solely for the property business is allowable. If you use traditional accounting, capital allowances for such equipment should be claimed on the next page of the tax return; more detail is on GOV.UK.

Original Description

If you're a landlord, this video explains what qualifies as 'Other allowable property expenses'. Find out about:

• the wholly and exclusively rule

• when to use the 'Other allowable property expenses' box

• what to include

• how cash basis and traditional accounting affects what you include

You can find out more about property income and expenses on GOV.UK.

0:00 Introduction

0:03 Wholly and exclusively

0:11 Total property income receipts below VAT threshold

0:26 Other allowable expenses

0:42 Cash basis - what can and cannot be included?

1:04 Traditional accounting

1:14 Further help and support

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