Tenant Documentation 

< previous | next >

Records must be kept for six years after the tax year to which they apply and should include:

• the rent you charge and receive
• any expenses charged separately - for example meals, laundry service
• the dates you rent out each property

HM Revenue & Customs (HMRC) recommends that you keep the following information and documents relating to the property:

• contracts for the purchase or sale, lease or exchange of the property
• any documentation that describes properties you acquired but did not buy yourself: for example, a gift or an inheritance
• details of any property you have given away or put into a trust
• copies of any valuations taken into account in your calculation of gains or losses 
• bills, invoices or other evidence of landlords expenses such as bank statements and cheque stubs for costs you claim for the purchase, improvement or sale of the property.

Your records should also include details of all your costs of letting or managing your property:

• letting agent's, accountant's and legal fees
• buildings and contents insurance
• property loan interest 
• property maintenance and repairs (but not improvements) 
• utility bills (such as gas, water, electricity)
• rent, ground rent and service charges
• council tax 
• advertising 
• other direct expenses of letting the property, like phone calls

Landlord property management software may help you to manage finance, landlords' expenses and general property management tasks.

You can reduce your taxable profit by claiming different types of allowances for the cost of furniture and equipment you provide with the property.

You may also be able to deduct certain 'capital' allowances for the cost of equipment relating more generally to your lettings business.

If your total income from UK property is under £15,000 a year before landlords' expenses, you can group the expenses as a single total on your tax return.

If the expenses are £15,000 or more, you will need to show them separately and complete the full return.
Your Tax Office can ask to see your records at any time. So hold onto the detailed information even if your income is less than £15,000.

If you sell or dispose of a property that's not your main home and its value has increased since you acquired it, you may have to pay Capital Gains Tax (CGT).

Some of your property costs can be deducted when working out your gain, so you will need a record of:

• when you bought or acquired it 
• when you sold or disposed of it 
• the purchase and sale price 
• any buying and selling costs, like Stamp Duty and legal fees 
• improvement costs and dates

< previous | next >