Expenses on rental property

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  • royboy1
    started a topic Expenses on rental property

    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


  • tatemono
    replied
    Yep ... classic

    Leave a comment:


  • jpkeates
    replied
    That's a great reason not to take advice from HMRC.

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

    Leave a comment:


  • rfph1
    replied
    Sorry, should have said, this transcript is edited - start has been removed as has a section from after 4:27

    Leave a comment:


  • rfph1
    replied
    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

    Leave a comment:


  • tatemono
    replied
    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.

    Leave a comment:


  • jpkeates
    replied
    Don't ever ask HMRC for tax advice.

    Leave a comment:


  • royboy1
    replied
    Thank you for your replies guys.
    I will run it, past the tax office.
    Thank you all
    Royboy1

    Leave a comment:


  • jpkeates
    replied
    As above - your business is continuing and the disposal is part of that business.

    Leave a comment:


  • MdeB
    replied
    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).

    Leave a comment:

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