Rental property - capital allowance help needed

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kellyp
kellyp Registered Posts: 44 Regular contributor ⭐
in General accounting discussion
Hi,
Sorry of this seems like a daft question.... one of my clients owns a property which she rents out.
Are capital allowances available for the cost of buying the property? i.e. the mortgage (capital portion)

If so, do properties qualify as AIA?

For some reason I assumed that only the interest was allowable but I am in doubt now...

Any help would be very appreciated.
Thanks in advance.

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  • jamesm96
    jamesm96 Registered Posts: 523
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    kellyp wrote: »
    Hi,
    Sorry of this seems like a daft question.... one of my clients owns a property which she rents out.
    Are capital allowances available for the cost of buying the property? i.e. the mortgage (capital portion)

    If so, do properties qualify as AIA?

    For some reason I assumed that only the interest was allowable but I am in doubt now...

    Any help would be very appreciated.
    Thanks in advance.

    Hi Kelly,

    PIM3000 is the one you want, and the introduction at PIM3005 gives a useful summary which is that, basically, no, you can't claim capital allowances in relation to buying the property.

    Hope that helps!

    Mike.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    You can't claim capital allowances or AIA as the property does not generally depreciate. You can claim expenses to maintain the property though.
  • kellyp
    kellyp Registered Posts: 44 Regular contributor ⭐
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    Thank you very much!!!!!

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