Property expenses

Property expenses incurred wholly and exclusively for your property rental business are deductible. You would subtract the expenses from your rental income when calculating your profit from you property rental business.

Mortgage of your property

Generally, only the interest element of the mortgage of your property is deductible against your rental income.

Repairs and maintenance

You may claim all expenses incurred to make good of your property. This includes wages for the cleaners and gardeners.

However, you may not deduct costs to improve your property as repair and maintenance. For example, you replace sofa with a sofa bed.

Accountant’s fee

If you pay your accountant to upkeep your property rental company accounts. The accountancy fee is deductible.

Insurance

You may deduct your landlord’s policies for buildings, contents insurance and public liability insurance against your rental income.

Necessity

Council tax, gas, electricity and water rates are deductible if you are paying for it. However, if these expenses are paid by your tenants not you then you are not allowed to claim it.

Property letting fee

You may deduct the commission you paid to your estate agent. Similarly, for estate agent management fee if they manage the property for you.

Other costs

You may deduct the costs for phone calls, stationery and advertising for new tenants. If you show your property to your potential tenants yourself and you incurred fuel costs. You may deduct that expense too.

Legal fees

You may also deduct legal fees you paid to your solicitors relating to your property. For example, legal fee for renewing a lease for less than 50 years.

Subletting

If you are subletting, you may deduct the rent you paid to your landlord against the rental income you received. This include ground rents and service charges.

If you have any questions about your property rental expenses, feel free to get in touch with our accountants.

Transfer property TR1 form

Transfer property TR1 form is used when you would like to transfer whole of your property title from one person to another. You can handle the property transfer paperwork yourself or you may ask a lawyer or property conveyancing expert to do it for you.

Where to get the TR1 form

You may download the TR1 form from GOV.UK website. The form is called Registered title(s) : whole transfer.

How to complete the Property Transfer TR1 Form TR1

The example illustrated below showing how to complete the form TR1 to transfer a house or a flat from individuals joint names to a sole name. For example, a brother and a sister jointly owned a house is to transfer the property to the sister by court order.

Box 1 Title numbers of the property:

You may obtain your property title number from Land Registry or If you still keep the property documents file given to you by your solicitor when you bought the property, you will see the property title number appearing in most of the documents in the file.

An example of a property title number: EGL888888.

Box 2 Property:

Type in the full address of your house or flat including postcode.

“Flat 28, 18 King Street London SW1Y 6QU”

Box 3 Date:

The date to put here is usually the date of completion.

Box 4 Transferor:

Write the joint individuals names already registered with Land Registry. In this illustration we would use Mr. Brother and Ms. Sister.

Box 5 Transferee for entry in the register:

Write the name of the person the property going to be registered with. In this circumstance, the sister would be the one, so you write Ms. Sister.

Box 6 Transferee’s intended address(es) for service for entry in the register.

If the sister is living in the property and would like the Land Registry document to be sent to the same address, you may just write “the property” in this box. You may also put other preferred address.

Box 7 The transferor transfers the property to the transferee.

Box 8 Consideration

Tick the box read The transfer is not for money or anything that has a monetary value. If the transfer of the property has not monetary value attached to it.

Box 9 The transferor transfers with:

Tick the box read full title guarantee

Box 10 Declaration of trust. The Transferee is more than one person and

In this example, there is only one transferee so leave this box blank.

Box 11 Additional provisions

You may refer to the court order stating the transfer of the property is to take place. For example, you may write:

“this transfer is made pursuant to an order of the Family Court dated 31 August 2019 in proceeding between Mr Brother and Ms. Sister under the court reference number LUCK451573R.”

Box 12 Execution

In this box, you may type out the signatory format as follows:

Signed as a deed by:

Mr. Brother

Signature:……………………………………………………………

In the presence of:

Signature of witness: ………………………………………………………….

Name (IN BLOCK CAPITALS): ……………………………………………

Address: ………………………………………………………………

Signed as a deed by:

Ms. Sister

Signature:………………………………………………………………

In the presence of:

Signature of witness: ………………………………………………………….

Name (IN BLOCK CAPITALS): ……………………………………………

Address: ………………………………………………………………

Land registry fee

There is a land registry fee payable with this application. Ensure you include the correct fee amount when you send in your application.

Where to send your TR1 form

Thereafter, you send your completed TR1 form and the Land Registry fee to one of the standard addresses below.

Address for members of the public
HM Land Registry Citizen Centre
PO Box 74
Gloucester
GL14 9BB

Royal Mail address for business customers
HM Land Registry
(Insert the name of your closest office)
PO Box 75
Gloucester
GL14 9BD

DX address for business customers
HM Land Registry
(Insert the name of your closest office)
DX 321601
Gloucester 33

That’s it. All done. You have a great day.