Expenses on rental property

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    #1

    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
    Tags: None
    #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

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