I only have one property in the UK and live in Spain. I go back to the UK three times a year and hire a car. I stay with my daughter and visit my property 20-plus miles away. Can I claim any of the car hire costs for tax purposes?
Arthur Weller replies:
If I understand you correctly, you own one property and that is a UK property that you rent out. While staying with your daughter you hire a car to see your rental property. If you look at HMRC’s Property Income manual at www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2220
you can see that, from what you have written, the cost of the car hire is an allowable expense that you can offset against your rental income. I am making the assumption that you do not use the car for any other purpose at all.
This question was first printed in Property Tax Insider in May 2019.