The Chancellor’s budget announcement provided a rare piece of good news for landlords who run a property letting business. Tucked away in his speech was a brief reference to the fact that they will now be able to claim the mileage allowance when they visit their tenanted properties.
Landlords, particularly those with larger property portfolios, can spend a significant amount of time travelling to their properties in order to conduct checks, address issues for tenants and perform routine maintenance tasks.
Normally they would use their own vehicle for such travel, and currently they are able to claim a proportion of the running costs as business expenses. However, this is a complex calculation that involves estimating the share of maintenance, servicing and other costs that are attributable to business usage of the vehicle.
The announcement suggests that, instead of estimating the share of actual costs, landlords will be able to claim a mileage allowance in much the same way that employees do when they use their own car for business travel.
We expect further details to follow, but given recent budget announcements – particularly last year’s 3% SDLT surcharge on the purchase of second or additional properties – this particular tax break should not be overlooked.
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