Is the income earned from renting out your property taxable?
Yes buy to let tax is applicable on the income which you earn from a buy to let property and will need to be declared in full when filling out your tax return. However, you will be able to deduct certain expenditures from the amount of income you have earned. The valid deductions may include a variety of letting expenses which you have run up during the course of the tax year. Once you have deducted this amount you should then be left with a net rental profit or loss for the relevant tax year.
What kind of expenses are eligible for buy to let tax deductions?
Broadly speaking, the expenses which are eligible for deductions must be incurred:
1)With the purpose of letting the property (and not for personal reasons)
2)Within a seven year period previous to the start of the rental period
3)As revenue rather than capital
If the expenses comply with the above criteria then you will be able to deduct them from the buy to let income on your tax return.
Other expenses which can be claimed against tax, include: