The renewals allowance gap

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    The renewals allowance gap

    In 2013 HMRC suddenly stopped the tax allowance in unfurnished rental properties, carpets, white goods and other items. It was a concessionary allowance so it could be done without any warning. In2016 a new allowance for costs of replacing domestic items for residential lettings only was introduced for carpets,white goods etc, I had to buy a new carpet in 2015 so I have not been able to claim tax allowance for it. Is HMRC likely to allow a tax allowance claim for this 3 year period 2013 -2016, when it stopped the allowance, or is the taxman going to keep the revenue. Has any of the Landlord sites made any representations to HMRC on this matter. It seems wrong that you could claim up to 5 April 2013, and from 6 April 2016, but not the time in between.
    from victuallersteve.

    #2
    You have to accept that paying tax is part of every LL's life experience .

    The expense allowance for replacing domestic items was started in 2016 when the 10% Wear and Tear allowance was stopped.

    Comment


      #3
      Tax rules change all the time.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment

      Latest Activity

      Collapse

      • Complex (for me!) CGT question on 2 property ownership...
        Raymondus
        Hi, this is my first post and I'm looking for some initial guidance on what I think is a somewhat complicated problem i'm heading towards...
        Apologies, its a long post!

        The facts:

        In 1983 my parents and I purchased our family council home under the Thatcher 'Right to...
        19-02-2018, 13:42 PM
      • Reply to Complex (for me!) CGT question on 2 property ownership...
        Raymondus
        Yes, I think you are right jpkeates. What started out as a fairly simple purchase and investment all those years ago has a life of its own now and has become complicated. I didn't for instance know if I might be able to claim PRR for the 3 years I was there when we first purchased it but just having...
        20-02-2018, 14:44 PM
      • Reply to Complex (for me!) CGT question on 2 property ownership...
        jpkeates
        You're probably going to need a tax specialist.
        When you are tenants in common with a percentage ownership, who lived where and when becomes critical and fiddly.

        For example, your third is subject to PPR for periods you were living there, but not when you weren't - family home or...
        20-02-2018, 12:55 PM
      • Reply to Complex (for me!) CGT question on 2 property ownership...
        Raymondus
        Hi JPKeates, we were tenants in common and what happened was my father left his share to my mother so she had 67% and I had 33%, which changes the figures Gordon 999 came up with.

        Re your response Gordon999 - thank you so much, you made me realize the obvious - that I hadn't actually owned...
        20-02-2018, 12:46 PM
      • Stamp Duty query
        HP mum
        I originally posted in the finance section - but I now think this is more of a tax question. Some questions arose during a discussion yesterday and I just wondered if anyone has any thoughts/ answers on the below?

        1stly) If someone (or company) buys a debt that has a legal charge over...
        20-02-2018, 11:36 AM
      • Reply to Stamp Duty query
        jpkeates
        Transactions are "connected" based on the facts of the transactions.

        You don't buy a property and its debt separately.

        In the example you give, the property is worth £3.5m, anyone buying it at £1.5m would be taxed as though the transaction was £3.5m - unless they...
        20-02-2018, 12:21 PM
      • Reply to Stamp Duty query
        HP mum
        thanks for the reply.

        Still a bit confused. If the debt is not a mortgage; rather a loan charged against a property does that make a difference?

        In such a poor market it is difficult to ascertain what is the "worth".

        If a transaction went through at...
        20-02-2018, 12:03 PM
      • Reply to Stamp Duty query
        jpkeates
        Buying a debt wouldn't incur stamp duty (unless the debt was some kind of tradable share). It's an interest in land, but it's unlikely to attract Land Tax as a secondary charge - but if the interest were sufficient to make it a controlling interest it might. If the debt was 99% of the property value,...
        20-02-2018, 11:47 AM
      • Has anyone read anything about the Labour Party's commitment to Land Tax?
        Worried of Bermondsey
        If so, can you share it because, from the little I've read, I'm worried.
        I believe that both Labour and Liberals are committed to replacing Council Tax with Land Tax.
        And I think this has very frightening implications for buy-to-let landlords.
        I've looked at how Land Tax works on...
        11-02-2018, 16:08 PM
      • Reply to Has anyone read anything about the Labour Party's commitment to Land Tax?
        elbowe
        ...they need to bring back Poll Tax, correct and proper tax, you use it, you pay for it (assuming adult etc).

        LVT is never going to get off the runway ..

        If Labour get into power we have far bigger issues than LVT .. after all they cannot even convince us they can actually...
        20-02-2018, 11:11 AM
      Working...
      X