offsetting tax liabilities on different properties

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    #1

    offsetting tax liabilities on different properties

    I own 2 buy to let flats and last October I bought another one so that's 3 altogether. This latest flat needed extensive renovation. We basically gutted it and put in new central heating, rewired, new kitchen, bathroom etc, The work was finished by the end of February but I then noticed that there was a damp patch on the bedroom wall and also paint bubbling by the skirting boards. We were advised that the plaster needed to be hacked off and some solution injected into the walls. This was done and all seems fine now. This caused a further delay in finding a tenant and eventually the new tenant moved in 1st May and she is very pleased with it,

    Although most of the work was major refurbishment work which I am aware cannot be offset against tax there was some work like repair to the existing windows and the damp work which I think can be offset against rent received now. As I didn't get any rent off the flat till after this new tax year started can I offset the repairs to this flat against my overall tax liability for the other two flats?
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    #2
    You need to pay for a consultation with a local accountant firm to identify which bills can be set against your rental income. ( by face to face meeting with your bills and receipts ) before you complete your tax return.

    Look for a shop offering bookkeeping & VAT records service for local shops in the suburbs of your town and make enquiry.for tax return advice.

    Comment

      #3
      Originally posted by MOONRIVER View Post
      As I didn't get any rent off the flat till after this new tax year started can I offset the repairs to this flat against my overall tax liability for the other two flats?
      Basically, yes - you have one property investment business with three properties in it.
      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

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