New tax-deductible items for corporate landlords
HMRC has issued new regulations, to come into force on 7 July, which list a number of items which may be deducted from taxable profits by landlords who operate as companies.
The deductible costs are those for “acquiring and installing” energy-saving items, specified as draught proofing and insulation for hot water systems , cavity walls, solid walls, floors and lofts.
The deduction calculated from these items is subject to a cap of £1,500 per property in the accounting period – irrespective of how many companies have incurred the costs. In cases where the company pays for alterations on several properties at once, the apportionment of expenditure for the purposes of deduction is to be on the “just and reasonable” basis.
Landlords seeking to claim deductions should always retain evidence for the expenses they incur on properties; this newly available deduction drives home the point.