Yes, UK investment property can be depreciated for tax purposes. Depreciation is a way to gradually write off the cost of a property over a period of time, based on its expected useful life. The process of depreciating investment property allows you to claim a tax deduction for a portion of the property's cost each year, which can reduce your taxable income and lower your tax bill.
To claim depreciation on an investment property in the UK, you must meet the following criteria:
- The property must be used in your business or held for the production of income.
- The property must have a useful life of more than one year.
- The property must not be fully depreciated.
If you meet these criteria, you can claim depreciation on the property by using the appropriate tax form when you file your tax return. It's important to keep in mind that the amount of depreciation you can claim may be limited by certain rules and restrictions. It's a good idea to consult with a tax professional or refer to HM Revenue and Customs (HMRC) guidelines for more information on claiming depreciation on investment property in the UK.