Income Tax Allowable Expenses

Name: Leydon Lettings
Address: 49-50 Castle Street, Canterbury, Kent, CT1 2PY, GB
Telephone: 01227 713913
Price range: ££

Such expenses must be wholly and exclusively for business use.
Revenue and Capital allowances are treated separately:
Capital Expenses:
- Based on bricks and mortar these allowances are claimed only upon property sale or transfer i.e. delayed
- Some apparently capital allowances are treated as revenue allowances under "the nearest modern equivalent rule". i
- Improvements are normally treated as capital allowances
- However, double glazing, originally treated as an improvement is now treated as revenue.
- Alterations are not normally revenue but capital.
Revenue expenses -
- Almost anything part of an existing property that already exists can be replaced with an equivalent substitute and be treated for tax purposes, not as capital, but as revenue:
  - kitchens, bathrooms, doors, painting, roof repairs or replacement are all revenue items.
  - The basic rule is, "if it already exists then it is probably allowable" as revenue expenditure.
- Rental (revenue) income can be offset immediately by allowable deductions reducing tax payable:

Tenants fees