Tax relief can be claimed on the interest paid on buy-to-let properties, unlike standard mortgages. May says: 'Where there is a rental loss, ie, expenditure exceeds income, relief for those losses are relatively limited. Generally, one would look at all properties as constituting a single business. If there is an overall loss, ordinarily this will be relieved by carry forward and offset against future rental income.' The wear and tear allowance gives landlords of furnished property 10% relief on the rent they receive, minus costs that the tenants would normally pay, such as council tax and utility bills. This relief is not available to landlords of unfurnished properties. Landlords must choose between this relief and the renewables relief.
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