A measure announced at Autumn Budget 2017 will simplify the way in which individuals and partnerships (made up of only individuals) can claim for motoring expenses associated with running their property business.
The new rules, effective from 6 April 2017, will allow landlords a choice between claiming fixed rates per business mile or actual running costs plus capital allowances. This brings the tax rules for rental businesses in line with those for trading business. Transitional rules will allow property businesses who have claimed capital allowances on a vehicle to start using the mileage rates if they wish. This would then prevent the deduction of any further capital allowances in relation to that vehicle.
If you would like assistance, or to discuss, please contact –
Amy Read (Leicester) on 0116 261 0061 or James Cornish (Rugby) on 01788 539000.