ATED tax relief for company owned flat if it is used solely for short lets and airbnb

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  • Gordon999
    replied
    If the property is held under company name, you have to register online with hmrc and complete the ATED tax return.and follow up by submitting a Relief Declaration Return to claim exemption.

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  • ATED tax relief for company owned flat if it is used solely for short lets and airbnb

    I understand that you can apply for ATED relief if the property is rented out for commercial purposes. How does one prove that? Do you need to provide residential AST as well as bank statements that show rental income? If my flat is just used for short lets and airbnb, would that be an issue? The flat's value is £900,000 so I believe the annual ATED charge would be £3500. Realistically, my flat is let for around 200 to 280 days a year, mostly expensive short lets during high season.

    Thanks in advance.

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  • tax / cgt question for renovating property
    by DroidEgg
    I purchased a shell of a house that was structurally sound but needed complete refurbishment. The house had been ransacked many items. eg All the radiators & copper pipe had been ripped from the walls.
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    02-07-2022, 10:33 AM
  • Reply to tax / cgt question for renovating property
    by Gordon999
    The underlying principle is that the cost of buying a property in good condition is clearly capital expenditure. Hence the cost of buying a dilapidated property and putting it in good order is also capital expenditure....
    02-07-2022, 17:21 PM
  • Reply to tax / cgt question for renovating property
    by dp17
    See the following property income manual, from HMRC , may be of some help.

    https://www.gov.uk/hmrc-internal-man...manual/pim2030...
    02-07-2022, 16:19 PM
  • Reply to tax / cgt question for renovating property
    by Section20z
    It may certainly be beneficial to allocate some of those expenses to running costs, electrical work required for the NEIC certainly is solely for the letting. Depends how much profit you are likely to make though, you'll have to do some sums .
    02-07-2022, 13:00 PM
  • Reply to tax / cgt question for renovating property
    by Gordon999
    If you purchased a building shell , and had the builder carry out the refurbishment work , then enter all expenses as an improvement in your records. You paid the builder by cheque and should have kept bank statements to show all payments .

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    02-07-2022, 11:59 AM
  • Reply to tax / cgt question for renovating property
    by jpkeates
    I'd suggest that based on that description, all of the work was probably capital.
    02-07-2022, 10:43 AM
  • CGT query
    by vik238754
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  • Reply to CGT query
    by Gordon999
    I believe your solicitor has to prepare a Deed of Trust which transfers 60 % interest in the property from wife to you.

    You need to make clear to your solicitor that Deed is for HMRC only and not for registration at Land Registry

    After signing the Deed , you...
    01-07-2022, 16:51 PM
  • Reply to CGT query
    by vik238754
    The existing declaration states 10:90 beneficial interest not legal interest
    01-07-2022, 13:06 PM
  • Reply to CGT query
    by Gordon999
    The Declaration changing the beneficial interest to 70:30 is prepared only for showing to the Tax Office .

    The existing registration of 10% :90% legal interest at Land Registry does not change and the Mortgage Lender has already accepted this situation. .
    01-07-2022, 12:18 PM
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