receipts to include in self assessment?

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    #16
    legepe,

    You need an accountant (It's probably worth the £100 fine for a late return).

    Property development isn't the same as property investment (and the tax treatment is different) - if you're buying properties and renovating them for rent (not just selling them on) a proportion of the costs are likely to be capital, not allowable against income.
    If you are buying, renovating and selling on, the increase in value is income, not capital, so that would be different.

    The van is a red herring if you're renting, it might be different for property development (you'd normally run that kind of business as a limited company).

    You're meant to have submitted a tax return for the years in question and you would be correcting those returns not simply claiming the past expenses on this year's return.
    Pre-letting costs for the first property are considered to have been incurred on the day the first tenancy began, subsequent costs are incurred as they occur.

    It's a six year rule, not seven.
    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).

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      #17
      theartfullodger,

      No you misunderstand... Ive been self employed since YE-2012 and all is fine on that side.. but I started with property in 2014-2015 and I was unaware that I would be able to claim anything against tax.. every days a school day...

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        #18
        Thanks for the info jpkeates..
        I have taken all receipts out of the equation that were on another persons trade account.. I was simply trying to get the discount the time... and im paying for that now..! after checking it really didnt amount to that much anyway.. ive taken out all expenses that ive recorded but lost the receipt for.. I've also only included expenses that I would class as a necessity replacement of items such as bathroom, kitchen, etc... and not included many of the other costs..
        Regarding the van, In a scenario that you develop a property over lets say 7 months and use your own car with a trailer to travel there and back every day and go and pick up supplies etc. I would think its only correct you would be allowed to claim a % of that back... With the van, Im simplifying things for accounts.. as i use it 100% for doing this exact same thing...
        I appreciate what you are saying by delaying with the return.. and put it in the hands of an accountant for £100 fine and his fee.. but I was going to submit it myself and take out an investigation insurance... just on the off chance they come looking for me...

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          #19
          Sorry! not the most sensible comment - about them coming looking for me it was just getting me down.. trying to figure things out...! I will probably do what you say.. pay a fine, and take my time with an accountant..

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          • Reply to Caught out by changes to Capital Gains Tax
            by jpkeates
            You have to make the return to tell HMRC there is no tax to pay, if that's the case.
            There is no option not to tell HMRC....
            09-12-2021, 09:58 AM
          • Caught out by changes to Capital Gains Tax
            by reluctantlandlord1976
            I appreciate 'ignorance' is no excuse, however there are some mitigating factors, i.e. due to illness etc.

            1. Previous family home rented out - terrible tenants - left owing rent, bad repairs etc. [usual story for some] subsequently property not let for 2 years for a number of reasons while...
            06-12-2021, 13:51 PM
          • Reply to Caught out by changes to Capital Gains Tax
            by Gordon999
            I think Andrew is correct .

            You start with 1/3 interest ( in 1982 valued at £6500 ? ) plus 1/6 interest from parent1 ( valued at £20K ?) plus 1/2 interest from parent 2 ( valued at £60K ? ). This probably takes your total entry cost to around £40K.

            Your total capital...
            09-12-2021, 09:47 AM
          • Reply to Caught out by changes to Capital Gains Tax
            by reluctantlandlord1976
            Hi Andrew
            First of all I've got an initial appointment to speak to an accountant on Friday!

            Can I just check where you write ' ...at death 1/6th of the value of the whole would have been deemed to pass to you for CGT purposes as the survivors would share the whole'.

            Does...
            08-12-2021, 18:02 PM
          • Reply to Caught out by changes to Capital Gains Tax
            by jpkeates
            Even if probate wasn't mandatory, it would probably have been useful.
            08-12-2021, 13:44 PM
          • Reply to Caught out by changes to Capital Gains Tax
            by AndrewDod
            Yes this would be the case if it was jointly owned (not as tenants in common). The situation would be that at death 1/6th of the value of the whole would have been deemed to pass to you (for CGT purposes), as the survivors would share the whole.

            So for the 3 periods you would be taken...
            08-12-2021, 12:51 PM
          • Reply to Caught out by changes to Capital Gains Tax
            by reluctantlandlord1976
            jpkeates
            There was no estate as such, property jointly owned - they were both retired at time of purchase living on small pensions, hence I bought with them so they could stay in the home they'd been renting from council from early 1950s to March 1982 at time of purchase. And I paid for the initial...
            08-12-2021, 10:50 AM
          • Reply to Caught out by changes to Capital Gains Tax
            by jpkeates
            I don't know the historic thresholds, but it's bizarre that there's no probate for both of your parents, their estate has to be tiny for that to be possible nowadays.
            It's probably too late for HMRC to do anything about that, but that process sets the values for CGT calculations later on, so it's...
            08-12-2021, 10:28 AM
          • Reply to Caught out by changes to Capital Gains Tax
            by reluctantlandlord1976
            Morning Andrew
            Thanks for your response early this morning and clarifying I have to make three separate calculations [the split wasn't clear on the CGT calculator].
            I understand the query on the value but this is an ex council house on a council estate [I feel I have to defend it here as...
            08-12-2021, 08:45 AM
          • Reply to Caught out by changes to Capital Gains Tax
            by AndrewDod
            As gordon indicates you need to consider it in three entirely separate parts, each have their own gain and calculation --

            The part YOU owned before Death 1
            The part YOU owned between Death 1 and Death 2
            The part you owned after Death 2

            Based on the values you give...
            08-12-2021, 05:52 AM
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