UK rental deductible expenses ?

[chall5]

Hi, doing my first tax return this year. Just trying to clarify what UK rental deductible expenses ?

 

Any other than :-

 

-mortgage interest

-maintenance

-managing agents fees

-landlord insurance

 

I assume you convert AUD right ?

 

Also if you are only allowed to claim the interest part of your mortgage payment it makes it look like you made quite a large profit but because you had to pay the capital part as well you only made a very small profit - is that taken in to account anywhere ?

[loftyfreeman]

I am also interested in this, just deciding whether to sell up or rent out for a while.

[dmjg]

Any tradespeople in to fix anything.

[chall5]

Any tradespeople in to fix anything.

 

couple, I have that under 'maintenance'

[buzzy--bee]

Your biggest expense is depreciation. If you live in Australia and own a UK rental you can depreciate it as if it is in Australia. This saves us thousands in tax every year.

 

BB

[Bungo]

Also if you are only allowed to claim the interest part of your mortgage payment it makes it look like you made quite a large profit but because you had to pay the capital part as well you only made a very small profit - is that taken in to account anywhere ?

 

It isn't just looks, it is a large profit.

 

The repayment of capital makes no difference to your overall wealth. If you were overdrawn in your current account and paid something over from your savings account, that is just moving money from one bank account to another, it is zero sum gain to you and you wouldn't consider that to make a difference to your wealth and this is just the same. Your mortgage is like the overdrawn account in this case. For that reason, no it does not come into tax returns because they are based on profit or loss, an increase or decrease to your overall wealth.