Expenses on rental property

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

    Expenses on rental property

    Hi
    Can anyone help with this, I have two properties in the uk
    one is rented out, the other was rented out but is now empty and on the market to be sold.
    I pay council tax, service charge, ground rent, plus a company to look after the property that's empty.
    Whilst it’s on the market. Can I clam all these fees as expenses or can I only clam them if the property was empty and sill up for tenancy ?
    Anyone?
    Thank you, Royboy1


    #2
    I believe tat the situation is that your lettings business is continuing, so you can claim any expenses for the property that you could if you were reletting it.

    If it were your last property, then the position would be different.

    Talk to a tax inspector at your tax office to confirm (not the bod that answers the phone).

    Comment


      #3
      As above - your business is continuing and the disposal is part of that business.
      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


        #4
        Thank you for your replies guys.
        I will run it, past the tax office.
        Thank you all
        Royboy1

        Comment


          #5
          Don't ever ask HMRC for tax advice.
          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


            #6
            I’ll second that. Do not rely on what they tell you on the phone. The best you can do is use a qualified accountant if you want it done properly and you don’t think you can do it.

            Comment


              #7
              i've actually found that the HMRC on-line chat people are pretty good - very professional and patient.

              As with anything though, always worth doing a bit of research in advance and seek confirmation if different advice given ....

              Hello. Welcome to HMRC webchat. 4:14 PM
              ZZZZ
              I was told that because the income was <£2500 each, we didnt need to do a self assessment, only inform HMRC - was that incorrect ? 4:20 PM
              XXXX
              That was incorrect Mr ZZZZ. Any property income must be declared via a self assessment tax return. 4:21 PM
              ZZZZ
              ok. Glad that I asked the question again. How do I go about making a self assessment tax return ?4:22 PM
              ZZZZ
              Ps your web site states:

              Property you personally own You must contact HMRC if your income from property rental is less than £2,500 a year. But you must report it on a Self Assessment tax return if it’s: £2,500 to £9,999 after allowable expenses £10,000 or more before allowable expenses https://www.gov.uk/renting-out-a-property/paying-tax 4:23 PM
              XXXX
              Ok ZZZZ that is correct i do apologise. 4:25 PM
              XXXX
              As you have made a loss there's no need to declare it. However, keep a record of the income and the expenses paid out in regards to the property. 4:26 PM
              XXXX
              If you make a profit and it is less than or equal to £2500 then we can include that in your tax code, rather than you needing to file a tax return. 4:27 PM
              ZZZZ
              Thank you very much XXXX. You have been most helpful. Have a good weekend.:41 PM
              XXXX
              Apologies for the misleading information at the begining of the chat Mr ZZZZ. I'm glad i could clear this up. Have a good evening. 4:41 PM

              Comment


                #8
                Sorry, should have said, this transcript is edited - start has been removed as has a section from after 4:27

                Comment


                  #9
                  That's a great reason not to take advice from HMRC.

                  If you hadn't corrected them, their "advice" would have been 100% incorrect.
                  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


                    #10
                    Yep ... classic

                    Comment

                    Latest Activity

                    Collapse

                    • Subsistence costs - can my limited company pay for me?
                      JamesHopeful
                      I'm going to make an overnight trip to another city wholly and exclusively for the purpose of doing some work in relation to my rental properties, which are owned in a limited company.

                      I am already treating my train fare and hotel cost as a business expense, paid for by the company, but...
                      21-08-2018, 20:28 PM
                    • Reply to Subsistence costs - can my limited company pay for me?
                      Gordon999
                      If you are away from home after normal day work hours and on company business, I think your company can decide to pay for your meals .
                      Its best to take the meals at the hotel so the cost appears under the hotel bill.
                      21-08-2018, 22:58 PM
                    • Question regarding upgrades in flat for tax relief
                      Helvie
                      Hi,
                      Im unsure as to what i can claim tax relief on. I have to replace a gas boiler as the current one isnt working properly, can i claim relief on this ? im also a registered heating engineer so doing the work myself purely material costs.

                      Is there a way i could invoice my property...
                      05-08-2018, 13:03 PM
                    • Reply to Question regarding upgrades in flat for tax relief
                      jpkeates
                      HMRC don't allow landlords to claim for their own labour against income for tax.
                      Landlords are expected to do work on their investment as part of their business activity.

                      That may be different in Scotland.
                      21-08-2018, 12:20 PM
                    • Move to ltd company
                      Helvie
                      Hi,
                      I read a lot about changing to a ltd company, at which point or why should this be done. I currently have 2 BTL and in the process of buying my third with a fourth on the cards for end of year or early next year. What is the best advice for this.

                      I am a tax free resident so...
                      06-08-2018, 09:41 AM
                    • Reply to Move to ltd company
                      jpkeates
                      You can't offset the repayment element of a mortgage against income (as an individual) - at least not in England, Scottish rules might be different.
                      The position as a limited company would be slightly different, but not that much.
                      21-08-2018, 12:04 PM
                    • Reply to Question regarding upgrades in flat for tax relief
                      Helvie
                      Well if it’s tax deductible then say I pay £1k for a boiler then my profit at end of year would be £1k less so wouldn’t pay tax on that amount....
                      21-08-2018, 09:42 AM
                    • Reply to Move to ltd company
                      Helvie
                      I’m talking about profit after mortgage and other payments are made., ie insurance, boiler contract etc. They are both on repayment mortgages so less monthly profit than interest only....
                      21-08-2018, 09:39 AM
                    • Seeking a professional tax expert please
                      Landlord2015
                      Fed-up of all the attacks on the BTL sector by the government and the ever-increasing red tape and hassles of managing tenants, so I'm looking to sell my portfolio of UK BTL properties and invest a fairly large sum into equities etc. from which to receive an annual 'retirement' income.

                      ...
                      20-08-2018, 12:26 PM
                    • Let Property Campaign and past experience
                      JazzApples
                      Hi,
                      The ex-wife and I had a couple of rental properties which we've rented out for the past 2.5 years. The initial intention was to use the properties as an investment for the future, but we divorced after a year and never put our tax affairs in order. After the divorce, I wanted to declare the...
                      17-08-2018, 16:19 PM
                    Working...
                    X