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

                    • Deed of trust to Ltd company
                      Vinkris
                      Hello All,

                      I’m new to this site/forum so apologies in advance if this question has been asked before.
                      i own my current property 100% and it’s on a personal mortgage. Now I want to move from the property due to personal reasons and want to let it out. I want to do BTL via company...
                      20-05-2019, 17:11 PM
                    • Reply to Deed of trust to Ltd company
                      Gordon999
                      If you don't want to break the existing mortgage loan, then you certainly cannot move to a new BTL mortgage....
                      24-05-2019, 12:15 PM
                    • Capital gains tax and tax credits
                      alice123
                      hi i have recently sold a rental property and have been working out my tax liability for the GCT which works out at 2,500 tax to pay and im a non tax payer and this just takes me over the threshold - ok for tax credits pruposed do i need to declare the captial gain as its a capital gain and not income...
                      17-05-2019, 14:29 PM
                    • Reply to Capital gains tax and tax credits
                      Gordon999
                      For any owner occupied property ( and never rented out ) , there is no tax to pay on the capital gain.
                      24-05-2019, 12:05 PM
                    • Question Re the 3% BTL SDLT Premium
                      jghomer
                      Hi All

                      Both myself and my wife each have a number of BTL props in our sole names.

                      We also jointly own our marital home.

                      We want to move house to something bigger, and have been advised that the 3% SDLT Penalty will sting us on the new purchase even though it is...
                      22-05-2019, 18:14 PM
                    • Reply to Question Re the 3% BTL SDLT Premium
                      Gordon999
                      If you buy a new home before you have sold the present home, you should expect to pay the extra 3% sdlt.

                      But current rules, you are given 36 months grace period to sell the old home and claim back the extra 3% paid on the new home
                      24-05-2019, 11:59 AM
                    • Higher tax bracket
                      someonenew
                      I will be a brand new landlord soon and wasn't sure if what I'm doing is correct (best for tax reasons)

                      I have two properties

                      1) Bought Feb 2017 (£185,000 24% equity) residential for me to live in
                      2) Bought May 2019 (£150,000 25% equity) buy to let

                      The...
                      21-05-2019, 15:10 PM
                    • Reply to Higher tax bracket
                      Gordon999
                      At present , you have one residential property which is your home and no rental income to report.

                      You have just bought a BTL in May 2019 ( this month) so you will be reporting the rental profit ( 2019-2020 ) some time during April - Oct next year . Submit a tax return your self or...
                      24-05-2019, 11:52 AM
                    • Reply to Higher tax bracket
                      someonenew
                      Thanks for the info guys. I guess speaking with an accountant is the next step. Have any of you used anyone from Manchester that you would recommend?
                      23-05-2019, 11:04 AM
                    • Reply to Question Re the 3% BTL SDLT Premium
                      jghomer
                      Thanks. Yes we are selling our main residence and buying another. So that's good news, thank you.
                      23-05-2019, 10:29 AM
                    Working...
                    X