When to register?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    When to register?

    Hi all.
    My personal mortgage is due to be paid off next month. I’m thinking of remortgaging on a residential mortgage, take the money out and use as a deposit for a buy to let. I then move back to my parents and so let out my property with ‘consent to let’ for two years.

    In order for my property to be rentable it needs some work. Should I register as a landlord before I start work on my own house so that any costs can be accounted for tax? Would I need my mortgage to be BTL from the start, not residential, for this to work as I would actually be living there as the work is done? (expecting this to be about an 8 week period)

    Many thanks

    #2
    I inherited a rundown house some years ago. I just did the bare minimum to get it lettable the first time, and then did more extensive repairs between tenants. (Consensus seems to be that you can't claim preparatory works if it is your first rental.)
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

    Comment


      #3
      Who are you thinking of registering as a LL with?

      pm
      Before acting on forum advice, you may wish to consult an expert, someone who has all the relevant facts, and who accepts liability for their advice.

      Comment


        #4
        Originally posted by property mongrel View Post
        Who are you thinking of registering as a LL with?
        The Local Housing Authority if:
        a. the property will be a licensable HMO (in England&Wales); or
        b. the property is in Scotland.

        OR HMRC, if the question relates to OP's need for taxation as L in respect of income from land.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          And the rest.......................

          pm
          Before acting on forum advice, you may wish to consult an expert, someone who has all the relevant facts, and who accepts liability for their advice.

          Comment


            #6
            thanks for the replys. I was thinking I need to register with the taxman as the rent would be taxable. I am PAYE so I need to register as a landlord with tax office.

            Comment


              #7
              Read #2. Register when you start letting it.

              Comment

              Latest Activity

              Collapse

              • Reply to When to claim accountant expense, same year or can it be added to previous year?
                by Gordon999
                The accountant has to start work after 6 April 2021 in order to cover the whole tax year of 2020-2021..

                So accountant's bill is correctly entered as an expense in current year.
                19-10-2021, 09:09 AM
              • When to claim accountant expense, same year or can it be added to previous year?
                by cuttingman
                Doing tax return for 2020-2021, paid accountant at the beginning of this month to check it. I gave them all my expenses including their fees and they put it in the tax return. But now that I thought about it because I paid in the 2021-2022 tax year I should add this expense to the next tax return....
                18-10-2021, 11:42 AM
              • Reply to When to claim accountant expense, same year or can it be added to previous year?
                by jpkeates
                Expenses should be claimed when they're committed or paid, so it looks like a mistake to me.
                18-10-2021, 11:59 AM
              • Reply to CGT check appreciated, thanks in advance!
                by Gordon999
                OK. Your capital gain =£22,242 less £12, 300 = £9942 x 18% = £ 1790 tax bill to pay.
                17-10-2021, 17:53 PM
              • CGT check appreciated, thanks in advance!
                by tatemono
                Would really appreciate some help checking figures. Figures below are halved because my sister and I inherit in equal shares.
                • property valued at £187,500 at date of mother's death in Jan 2015
                • recent sale value £217,500
                • improvement costs £5,318
                • costs of sale: £2,440.50
                • no reliefs
                • my profit
                ...
                16-10-2021, 15:15 PM
              • Reply to CGT Query
                by jessa46
                Thanks for reply, much appreciated.
                I asked my solicitor about the 30 day rule and he emailed me back saying I didn't need to do this as no cgt to pay but, as I do a yearly self assessment, to include it my self assessment. I'll be sending it off this week. There's a website called 'xxxx' which...
                17-10-2021, 16:33 PM
              • Reply to CGT Query
                by AndrewDod
                - You have to submit the CGT calculations within 30 days regardless of whether there is CGT to pay (else you get large and increasing fines)

                No it is not added to your income for this purpose
                17-10-2021, 15:54 PM
              • CGT Query
                by jessa46
                I have never claimed CGT allowance but may need to after selling an inherited property. The property gained in value during probate. The sold price was £153k and the valuation at death for 'capital gains purposes' was £130000. There are 3 shares. My share of selling price is £51k and share of gain...
                13-10-2021, 17:37 PM
              • Reply to CGT Query
                by jessa46
                Thank you for replies. Re how it was valued, this is where my head spins. Our mum passed away around 8 years ago. We got probate in 2019. Property was transferred into 3 siblings names in 2020, so that we could benefit from personal CGT allowance. The solicitor sent us a document 'for hmrc cgt purposes'...
                17-10-2021, 15:13 PM
              • Reply to CGT check appreciated, thanks in advance!
                by AndrewDod
                I'd imagine it would be payable as CGT by the individuals. Certainly that would apply to interest earned on savings during probate so don't think CGT would be different. It is definitely not payable by the estate (that would be grossly unfair to some beneficiaries who had not used various allowances)....
                17-10-2021, 13:05 PM
              Working...
              X