Dreaded Tax questions

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    Dreaded Tax questions

    Hello All

    Writing here as someone that is completely new to being a landord and I'm seeking advice on those dreaded tax questions.

    My partner and I were fortunate enough to be able to keep the small property that we lived in when we decided to move on to another property.
    Over time I then spent a fair wedge of cash refurbishing the property and we now have some wonderful tenants in the property.

    But now we have income its time to look at tax returns and even the question of VAT registration.

    I am currently planning to have the "business" in my partners name as she only works part time and doesn't pay any tax. If it were in my name we would end up paying at the higher rates due to wages I earn from my "day" job.

    I am however interested to see if we can look to claim back some of the costs (VAT) associated with the refurb work. I've been trying to read up on the VAT rules etc. but it is a minefield and pretty confusing. I thought I'd post up here before we probably go and seek some professional advice.

    Thanks

    #2
    You can claim the whole of the cost for refurb work BUT more if it is enhancement then it is offset against capital if its replacement or general refurb then offset against rental income .

    You can offset the whole costs including VAT . In terms of your partner don't forget she is also able to give you 10% of her personal allowance

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      #3
      In future please try to post in the relevant forum as there is a tax form where you are more likely to get a reply thanks

      Comment


        #4
        Thanks and apologies. I've just realised there's a tax section. That's what I get for posting after my bed time!

        Can admin. please move this post to the correct place?


        Originally posted by blinko View Post
        You can claim the whole of the cost for refurb work BUT more if it is enhancement then it is offset against capital if its replacement or general refurb then offset against rental income .

        You can offset the whole costs including VAT . In terms of your partner don't forget she is also able to give you 10% of her personal allowance
        I suppose the work done falls into both camps to be honest.

        And the more I look The more I think I need some real help with this as there's all sorts of factors that could be involved or otherwise and we obviously want to maxmise our chances here.

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