HMRC’s support for customers who need extra help
HMRC’s principles of support for customers who need extra help set out their commitment to support customers according to their needs, and underpin the HMRC Charter.
Exempting rental income up to a limit (£7,500 for 2021/22).
Rent-a-room relief is disadvantageous in a year when your letting expenses exceed rental income. In this situation you should elect to disapply the relief. This allows the loss to be carried forward and used to reduce tax on rental income for a later year, even if the rent-a-room deduction is claimed.
Tax deductions for your buy-to-let property
As a general rule, a “revenue” tax deduction can’t be claimed for the cost of improving your property.
Where possible you should categorise works as repairs. As a rule of thumb, a like-for-like repair or replacement using similar materials to the original counts as a repair regardless of the scale. This applies to the structure of the building and to equipment fitted to it such as boilers and water systems.