New and inexperienced landlords could be missing out on hundreds of pounds a month at a time when the weak property market means they need all the money they can get, according to specialist buy-to-let lender, Paragon. That's because many are failing to claim for all of the property-related expenses they can offset against their annual tax bill.
Rent from buy-to-let property is subject to UK income tax and should be declared on a Letting Income Schedule. However, landlords can also use the same schedule to claim back costs "wholly and exclusively" incurred in generating that income.
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