I rent storage, can I offset the costs?
Question I have some flats on rental. Sometimes I have to remove furniture from a flat because the tenant does not like a particular piece.
I therefore rent storage space in which I keep a supply of items of furniture which move into and out of any one of upto 7 flats. Can the rental charges be placed against my income in the same way as other (allowable) expenses?
Yes, the cost of renting storage space is allowable. The reason is that it fulfils the principal criteria of "wholly and exclusively", as the cost was incurred for the purpose of your property business. If you never had rented property then you would not be incurring such costs.
John owns 5 properties which are all fully furnished. However he finds a new long-term tenant for his property who has his how own furniture and furnishings. John decides that he will empty the property and store the furniture in rented storage. The cost of rental storage is £450. This amount can be offset against the rental income as it has been incurred ‘wholly and exclusively’ for the purpose of the rental business.
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