Whose right

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    Whose right

    Can anyone advise , please ? I'm completing my first ever tax self assessment (after advice from your good selves that it wouldn't be worth hiring an accountant to do ! ). I work part time ,one night per week as a night school teacher for 3 terms totalling 30 weeks work per year. In May last year I started to rent a house out that my mum left to me (I was advised that it would be better to wait until the market picks up and use the rent as a form of income as my earnings are so small do to job cuts). I hired an agent to rent the house out for me , etc. I am doing my Self Assessment - started today - and phoned HMRC for advice. They started to talk me through some of the trickier bits. One thing puzzles me, though . I was advisedaby HMRC about 3 months ago that I could claim tax relief on the agents finders fee ( £350 ) and the Electrical performance Certificate ( £75 ) as this was a tenancy that is renewd every 6 months - as opposed to yearly. Yet , according to the person I spoke to today , I CANT claim relief on it . Totally confused . Two HMRC representatives , yet 2 different pieces of advice over the same problem . Can anyone advise , please ? Thank you !

    #2
    Are you using HMRC form SA105 for declaring annual income from property ?
    ( you can download form SA105 from www.hmrc.gov.uk )

    Box 18 : 7000 annual rent income

    Deductable Expenses are entered in

    Box 22 - Council rates and insurance
    Box 23 - 75 EPC ( Repairs and renewals)
    Box 24: Interest paid on Mortage loan
    Box 25 - 700 ( Legal and letting agent )

    Comment


      #3
      6 months vs yearly is a complete red herring, no idea what they might have thought you had asked either!

      If you legitimately incur expenses for the purposes of letting out the property then they will *generally* be deductible against your rental income.

      EPC and letting agent costs are, without doubt, deductible.
      I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

      That also means I cannot share in any profits from any decisions made!

      Comment


        #4
        Thank you all for your replys ! Putting the finishing touches to the Assessment, I decided to phone hmrc again and explain my confusion. Was put through to the relevant team who double checked and informed me that I COULD claim for the finders fee and electical performance certificate . So my first assessment is done , dusted and paid !

        Comment

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        • Caught out by changes to Capital Gains Tax
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          06-12-2021, 13:51 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          Thank you Gordon, didn't see your response this afternoon. I will look at this with fresh eyes tomorrow as it's late now.
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          08-12-2021, 00:55 AM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          Andrew, apologies only just seen your post [was it awaiting approval did you say?] answers are:

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          08-12-2021, 00:41 AM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          JP Keates
          I wasn't aware that refurbishment deductions only applied in terms of letting out the property. On the CGT calculator it asked 'How much have you spent on improvements since you became the property owner'.....

          Here's the timeline:

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          07-12-2021, 18:01 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          JP Keates et al - thank you very much for your assistance. I have this afternoon emailed an accountant to try and get an appointment urgently. I hadn't realised it was all so complicated and it was remiss of me to not be aware of the CGT changes made in 2020 due to not renting out the property. Thanks...
          07-12-2021, 17:28 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by jpkeates
          Refurbishment while you were living there is only allowable against CGT if it was solely and exclusively for the business, so if it was to prepare the property to be let, it would be OK.
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          07-12-2021, 16:22 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by AndrewDod
          The probate resets a lot of the stuff, but my main response was unapproved
          07-12-2021, 15:36 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by AndrewDod
          You are really short on detail:

          Date (year & month) bought in joint names ______ (what % was yours then)
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          07-12-2021, 15:33 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by reluctantlandlord1976
          We were all joint owners. Bought it with parents. I lived there for 10 years before buying own home. I became sole owner upon their deaths. Rented out since 2007-2019. Empty last two year as trying to sell. Hence I was off the landlord radar. I am now extremely worried by your statement that refurbishment...
          07-12-2021, 14:53 PM
        • Reply to Caught out by changes to Capital Gains Tax
          by AndrewDod
          Let us know the exact timescale and money involved year by year - I am sure some kind person (or even myself) with do a calculation for you so that you can assess the risks involved
          07-12-2021, 14:33 PM
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