Will i be penalized

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    Will i be penalized

    This is my second year of renting letting my house which i used to live in. I did not declare anything for first year as i was not sure if renting was something i would continue after initial 6 months. If i start declaring now will i be penalised for not paying the previous undeclared year? Any help with this really appreciated.

    #2
    Go and see an accountant and explain. I believe you can send in an amendment to last years tax return up to a year later. An accountant may even spot some deductions you didn't know about, and get you a tax refund!

    How great would that be?
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      What date did you start renting it out?

      Comment


        #4
        Thanks for reply. Q: Do i have to declare previous year to HMRC when i fill out forms etc or can i claim i have only renting from present tenant?

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          #5
          Yes, you should declare previous year.
          To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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            #6
            Originally posted by Telometer View Post
            What date did you start renting it out?
            What date did you start renting it out?

            Comment

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            • 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.
              I've put some figures in my reply to a post just now but answers below to your questions.

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              08-12-2021, 00:55 AM
            • Caught out by changes to Capital Gains Tax
              by reluctantlandlord1976
              I appreciate 'ignorance' is no excuse, however there are some mitigating factors, i.e. due to illness etc.

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              06-12-2021, 13:51 PM
            • 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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              Get yourself to...
              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)
              Date it converted to your sole name ______ (presumable date of death of parent 2?)
              Declared vale at probate _________
              Capital expenses between date of probate 2...
              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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