My client has included £1,000 as parking bay costs on a luxury flat rented out. I can’t see any reason not to deduct it, as it is a cost, but can’t find anything specific that allows me to in HMRC’s guidance manuals.

Arthur Weller replies:
If I understand you correctly, the landlord has to pay £1,000 rent to someone, in order to provide a parking bay to his tenant. In HMRC’s Property Income manual (see www.gov.uk/hmrc-internalmanuals/property-income-manual/pim2205) it is implied that the rent that a landlord has to pay in such a circumstance is an allowable expense.