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I bit of a basic question. I want to know if I can claim 45p per mile when traveling to view potential BTL properties, the areas that I invest in is 30 miles away from my home address.Thanks
See these videos which discuss this matter, produced in association with our tax partner, RITA:
See also - Landlords' A - Z of property tax expenses - Video Guides The bottom line is that you can claim any expense legitimately incurred undertaking your business, as long as you keep receipts etc. and can justify it if HMRC come knocking! Keep things reasonable and they are very unlikely to ...A good accountant will assist you wish this and ensure you claim every allowable expense - worth their weight in gold imho!
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I think you cannot claim costs home to work travel as an employee, I think.
I am about to be formally employed to do the work on a property bought by our family Ltd. of which I am a junior director.Does this make any diference to claiming travel costs?
It will depend on where your normal place of work is. Simplifying, you can claim for travel from your normal place of work to another site. So if your normal place of work is your home office, you can claim mileage from your home to wherever you are going for work.
I had tbis same question and seem to get different answers from different accountants which is very frustrating.
The accountant I currently use maintains that an svp holding buy to let is an investment company rather than a trading company thus any costs incurred pre rental are not allowable expenses this includes all scouting trips for future purchases
where as other online forums (tax cafe) suggest these are allowable expenses
my view is they should be as a large part of what I do is scouting areas and properties to invest and run as a business. Admittedly I am currently in Thailand looking at apartments to buy and not sure HMRC will swallow flights here to look at potential property purchases but surely mileage whithin the uk should be allowable
any property accountants care to comment ? Apologies if the answer is in the video posted above but not able to watch videos currently
thanks for your reply. I have watched the video and it mentions travel costs to the property which you own, but doesn’t state the costs for viewing potential properties. So I’m non the wiser. It’s interesting that accountants have a different take on this, depending on who you speak to.
Hi Mike, I would claim for everything i could and wait until the HMRC decides you can't. That way at least you've had the benefit of the tax allowance until they want it back.
As I understand it, you cannot claim for income tax deductions prior to the start of the business but if you already have 1 property in the SPV which is rented, subsequent expenses are accepted, if they are wholly and exclusively for the business (so assuming you are having a bit of a holiday in Thailand, this would not be deductible as the trip is not "wholly & exclusively" for the business).
Hi heather that’s sort of correct if I have one property that’s rented out from that point I can claim expenses relating to that property I.e. visiting it, repairs etc... but I still cannot claim expenses going to look for other new properties to add to the business .. that’s the view of my accountant anyway
Sorry for the late reply. I think the argument is that now you have one BTL, you are running a BTL business. Adding more properties to that business is part of the business costs and therefore deductible. As long as the mileage is "wholly and exclusively" for the operation of your business. I would try arguing it as my accountant has included travel to property viewings in last year's SATR.
hi heather totally agree and that is my logic but my accountant maintains it’s an investment rather than a trading business this is because it buys and holds long term BTL it doesn’t flip etc - so HMRC knows it’s just a tax shelter each property within the business can have expenses claimed in relation to it but any additional only once they are actively tenanted - would be good to get the view of any other accountants or investors on here who have claimed “scouting” expenses