Can you claim service charge as a taxable expense even if it wasn't officially paid? We were originally the freehold of the building of two flats so we charged a service charge to the other flat and we paid ourselves. However we have now sold a share of the freehold to the other flat, so we stopped collecting and paying a formal service charge as we agreed it wasn't needed. Instead we would just split the cost of repairs when they were required. However I need to take out the equivalent cost of the service charge from my rental income for repairs. Can I put this on my tax return?
Service charge
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You can't claim for a cost that isn't incurred (if accounting on the cash basis) or which is not ever due to be paid (if accounting on the accrual basis).
You can claim for the actual repair costs that are incurred.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).
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by CelibinFlat let for 2 years now not occupied by owner. Will it just be the 2 years let or the whole period when the owner is not occupying that counts for CGT?
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Channel: Tax Questions
27-01-2021, 04:44 AM -
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Channel: Tax Questions
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by EchoesDo you have the links I can have a look? Thanks
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Channel: Tax Questions
27-01-2021, 11:08 AM -
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Channel: Tax Questions
02-11-2020, 08:01 AM -
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Reply to Cgt periods when owner is liableby jpkeatesCGT is payable unless Private Residential Relief is applicable, so you're liable for CGT for the entire period when the property wasn't your main residence.
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Channel: Tax Questions
27-01-2021, 10:15 AM -
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Channel: Tax Questions
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Channel: Tax Questions
26-01-2021, 14:19 PM -
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Channel: Tax Questions
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Channel: Tax Questions
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Channel: Tax Questions
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