Did all property income cease....

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    Did all property income cease....

    Just looking at the tax return for for 2016-17:

    Our tenants left the rented property (our only one) around end of April 2017, and we sold the house much later that year.

    The last rent payment (I'll need to double check the dates) I think may have been April 4th 2017. There was a dispute over the deposit that resulted in that being delayed, and we had many repairs and replacing carpets etc in the months after.

    On the tax return form it asks "Did all property income cease in 2016-17 and do you not expect to receive such income in 2017-2018".

    If I tick this box, does it mean HMRC are expecting a Capital Gains calculation on this form, even though it was the next tax year we sold it?
    Should I tick this box, or not?

    In case its relevant, our calculations show that there is no capital gains tax to pay as we lived in the house for a period of time.

    #2
    How long was it rented out for?

    On what basis have you been accounting for HMRC in previous years?
    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...

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      #3
      Was rented our since around 2014. Income was reported via self assessment "income from property in UK" section.

      Comment


        #4
        Did you account on a cash or accural basis 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


          #5
          Forgive me I'm not sure what that means - cash I guess. I reported the actual rent that was paid, minus mortgage interest and costs. I did this each Jan 31st for the previous tax year.

          So on the date it landed or left the accounts I guess.

          Comment


            #6
            Capital gains are declared for the tax year in which they are made. So no to that one. You declare later.

            I would have thought it reasonable to say income has ceased if (to clarify artful's point) you did declare the 3rd April rent in your tax return for the year ending that April. The main reason they ask that is that they may decide to take you out of self assessment (depending on the rest of your tax affairs).

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            • Reply to Caught out by changes to Capital Gains Tax
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            • Reply to Caught out by changes to Capital Gains Tax
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            • Reply to Caught out by changes to Capital Gains Tax
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              jpkeates
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            • Reply to Caught out by changes to Capital Gains Tax
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