Short tax return

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

    Short tax return

    I have one letting property. I have always used a short tax return which has been fine for giving totals of rent and costs inc mortgage interest. Now that the allowance for mortgage interest is reducing by 25% every year how do I show the figures? Whichever tax return I use, do I do the calculations and show the 75% of interest or do I show the total interest and leave it to HMRC to adjust?
    Apologies if this has been asked before.
    Sam

    #2
    When you checked against Theresa's document here, what did you conclude? What total profit & what total rental income please?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Sorry artful, I don't understand why you are asking me that. I haven't checked against Thersa's document (what is that?). I just want to know how I show the reduced mortgage interest claim against profit.
      Thanks
      Sam

      Comment


        #4
        Apologies, I failed to include Theresa's link:
        https://www.gov.uk/government/public...rn-notes-sa210

        Just done my draft submission: In a state of shock regarding estimated payment required 31/01/2018.
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment

        Latest Activity

        Collapse

        • Maintenance payment flow of funds
          Kots
          Hi all,

          I am one of three flats and I own a share of freehold. We've setup a company to deal with the day-to-day matters such as maintenance payments and such.

          One of the freeholders, who is also a director of the company, usually arranges quotes for maintenance works and insurance...
          15-10-2019, 05:10 AM
        • Reply to Maintenance payment flow of funds
          Kots
          Thanks for your replies.

          We are tenants in common and although the initial idea was to pay funds in advance, I am not for this so the plan would be that funds are paid as they are required.

          What about HMRC, does anybody know if I'd be unable to offset these payments against...
          16-10-2019, 14:08 PM
        • Reply to Maintenance payment flow of funds
          leaseholder64
          I'm not clear as to whether the company is the actual freeholder, or you are tenants in common. In the latter case, setting up a company is an unnecessary expense, which probably cannot be fully funded from the service charges.

          Also I'm not clear as to whether any service charges are paid...
          15-10-2019, 10:09 AM
        • Reply to Maintenance payment flow of funds
          Gordon999
          It is better for the service charge money to be kept in a separate current account because the bank statement records can be made available for inspection by any leaseholder. The unspent service charge money / funds should not be mixed with a business account belonging to one of the leasehol...
          15-10-2019, 07:05 AM
        • CGT Relief for PP ?
          JimmyJ
          This relates to a property that was our family home for a number of years then which we rented out for a number of years and which we then sold. I understand about the CGT reliefs for private residence and rental periods. But when we put it on the market we were advised by the agent to a) repaint the...
          12-10-2019, 08:38 AM
        • Reply to CGT Relief for PP ?
          Gordon999
          The work ( painting rendering ) was requested by the estate agent and should be charged as a " sale preparation cost " . This cost should be treated as similar to estate agent's commission and advertising cost , and charged against the sale price ....
          12-10-2019, 21:01 PM
        • Reply to CGT Relief for PP ?
          AndrewDod
          Disagree with you on this one JP. HMRC give pretty clear examples:

          Explanation A repair to an asset restores it to what it originally had been and is normally an allowable revenue expense. For example the cost of replacing roof tiles blown off by a storm. The cost of alterations, however,...
          12-10-2019, 19:12 PM
        • Reply to CGT Relief for PP ?
          JimmyJ
          Just to clarify. It was empty at the end of the previous tenancy because the tenants didn't want to renew for a short period and I didn't want to renew for a year , so as not to compromise the sale. During the empty period I tried to let it short term but that did not happen....
          12-10-2019, 13:16 PM
        • Reply to CGT Relief for PP ?
          jpkeates
          A property remains part of a rental business until sold*, even if the last tenancy ends some time previously.
          Painting to increase the capital value can be a capital expense (or could equally be maintenance).

          *Or the landlord moves into it, converts it to a holiday let etc etc.
          12-10-2019, 12:47 PM
        • Reply to CGT Relief for PP ?
          AndrewDod
          Although painting is never a capital expense unless it is something highly unusual. Not everything is a capital expense - especially if it replaces or maintains something that was there. If the repair is something that tends to be reoccurring or could be recurring -- repair of existing appliances,...
          12-10-2019, 11:30 AM
        Working...
        X