What can I claim against rental income

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  • Tax Accountant
    replied
    Even if you move into the property in the future, you may still be liable to CGT based on the period whilst the property was not your only or main residence.

    I don't understand your last paragraph. Basically, if the expenditure is an improvement, you cannot claim any part of it against your rental income.

    Leave a comment:


  • josswallace
    replied
    claim for central heating

    Many thanks for your reply.

    As I expect to move into the property at some time in the future and live in it as my sole residence I don't expect to pay CGT.

    If say the repalcement costs of the old ascots and electric fires was estimated at say £1000 could I claim this £1000 of part of the central heating bill.

    Leave a comment:


  • Tax Accountant
    replied
    You can claim interest on the private mortgage as well as the replacement mprtgage. You maty need to deduct tax at 20% from the private interest and pay over only the net interest.

    Carpets is furnishings and could be claimed as 10% wear & tear or renewals basis on a subsequent change but not both.

    Central heating installation is always improvement and claimed when calculating capital gains tax on a disposal.

    Generally, all expenses before commencement of lettings are additional costs of buying the property and putting it in a fit state to let before letting, and therefore not allowable against rental income. It is only the ongoing expenses incurred as a result of letting which are allowed as expenses against rental income. Improvements are always disallowed. Sometimes there is a fine dividing line between expenses and improvements.

    Trust this helps.

    Leave a comment:


  • josswallace
    started a topic What can I claim against rental income

    What can I claim against rental income

    I am in the process of renovating a large flat which I have just bought.

    1. I have a private mortgage until the renovations are complete when I will get a buy to let mortgage. I am assuming I can claim the interest payments on both these mortgages against future rental income - is this correct.

    2. Although the carpets were good quality they were very old and worn and I have replaced them all. Can I claim all this on my first tax return that includes the property.

    3. The hot water in the flat was provided by two ascots serving the kitchen and bathroom and the heating was gas or electric fires. I have replaced all this with a central heating system for hot water and heating. What % of the central heating installation could I get away with claiming against future rental income.

    I was planning to claim these amounts on my first tax return then go to the 10% of rental income on subsequent returns - is this the best approach.

    Any help would be appreciated.

Latest Activity

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  • Reply to Is it an allowable expense or capital expense
    by AndrewDod
    Can't see any reason this would be an insured event. Agree it is not a capital expense at all....
    25-05-2022, 09:25 AM
  • Reply to Is it an allowable expense or capital expense
    by Another Fine Mess
    If you dont mind me suggesting, If your Insurance Company is rejecting your claim you could get in touch with a Chartered Loss Assessor who would argue with the Insurance Company Loss Adjuster, its worth a phone call to one.
    24-05-2022, 16:30 PM
  • Is it an allowable expense or capital expense
    by shipboard
    I rent out a single property, during the winter storms the brickwork was damaged and the cheapest option to repair it was to render the Gable end and rear of the property. I tried to claim on the insurance but they maintained it was due to wear and tear, I am of course disputing this. My question is...
    24-05-2022, 10:04 AM
  • Reply to Is it an allowable expense or capital expense
    by gnvqsos
    I think the insurance company were right-the render must have been distressed to suffer storm damage. You can offset cost against income.
    24-05-2022, 14:36 PM
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    by Gordon999
    Hmrc rules allow transfers between spouses without cgt. The recipient spouse takes on the asset at the original purchase price.
    24-05-2022, 11:16 AM
  • Reply to Is it an allowable expense or capital expense
    by Gordon999
    I agree with jpk : it is a maintenance expense which is claimed against rental income....
    24-05-2022, 11:12 AM
  • Reply to Is it an allowable expense or capital expense
    by jpkeates
    I'd say that's a maintenance cost and would be allowed against income.
    It would affect the value of the property, but only to restore it to the level that it was at prior to the damage (plus the general positive effect of any large maintenance work).
    24-05-2022, 10:53 AM
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    by jpkeates
    What you are planning to do is routine and HMRC will accept the change as a matter of routine admin.
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    Hello,
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