Blog detail

Landlords: What Travelling Costs Can Be Claimed?
Landlords: What Travelling Costs Can Be Claimed?
By Marie walshe In Uncategorized Posted July 23, 2016 0 Comments

If a landlord deals with the management of a rental property himself, the expense incurred by landlords for travel to and from the properties can be costly.  A journey must be undertaken ’wholly and exclusively’ for the purposes of the property business in order to be deductible as a business expense. The cost of all trips from home to the rental property for a business reason (e.g. to check on the investment property/liaise with tenants, etc.) will be allowable. Problems can arise in instances where the trip has a duality of purpose, being partly for private and partly for business reasons. 

Care needs to be taken if the property business is run from a separate office away from home. Travel from home to the office is disallowed, but travel from office to the rental property can be claimed. Travel from home directly to the property would not be permitted if the base is not at home.

There are two methods of calculation for running expenses incurred:
The actual basis, such that the actual expenses incurred (fuel, repairs, insurance, etc.) are totalled and apportioned between business and private percentage using detailed records. or
2. the standard method of calculation is the use of a fixed rate per mile (as per HMRC’s authorised mileage rates). Currently, the first 10,000 business miles are claimed at 45p, then 25p thereafter. Once this method of claim is used, it must continue to be so for as long as the car is owned and used in the business.
When the landlord lets out a foreign property and the purpose of the trip is to both visit the property and have a holiday, only those items of expenditure incurred solely for the purpose of the rental business can be deducted. 

Leave a Comment

Your email address will not be published. Required fields are marked *