Rent discount due to repairs and disruption - how to record

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

  • Rent discount due to repairs and disruption - how to record

    Hello
    Last November my property developed a damp problem. Now the repair of this took several days and a lot of disruption - kitchen could not be used etc. (The tenants were advised to move out by the damp proofer for the duration). Anyway to cut a long story short we negotiated a month's rent free plus 90% discount of another month in exchange for them repainting the repaired walls.

    The question is how do i account for these discounts. Are they allowable - if they are what do they come under. I am using ezpz landlord (similar to sage) for my accounts. Thanks for any help

    michelle

  • #2
    You didn't receive anything, so there is nothing to account for. So month one is:

    Income: £0

    Month two income: £50 (assuming is 10% of the rent, i.e. a 90% discount)
    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

    Latest Activity

    Collapse

    • Capital Gains Tax Query
      glyall
      Hello,

      I am looking for help with regards to a query about CGT.

      First off, the situation. I own a flat in Dundee. It's been my main and only residence since September 2013 (nearly 4 years). I am planning to move to Edinburgh to be closer to my girlfriend. She owns a flat 50-50...
      21-08-2017, 10:28 AM
    • Reply to Capital Gains Tax Query
      Gordon999
      If you buy a cheap flat and re-sell after 6 months , the tax Office may decide the "profit is trading income" and subject to 20% or 40% income tax. You would have to live in the flat for atleast one year or longer to claim main residence and exemption for cgt..

      If you have a...
      21-08-2017, 17:31 PM
    • Clarification on ATED
      klinka01
      Hi guys,

      Just needing some clarification regarding the ‘annual tax on enveloped dwellings’ (ATED). From what I understand, there is a charge of £3500/ year for limited companies owning properties worth >£500,000.

      For arguements sake, if I bought a property for £499,000,...
      21-08-2017, 11:38 AM
    • Reply to Clarification on ATED
      Gordon999
      If you’re not sure which value band your property falls into, you may be able to ask HMRC for a Pre-Return Banding Check (PRBC) if:
      • you’re not due a relief that will reduce your ATED charge to nil
      • your property valuation falls within 10% of a banding threshold


      The 10% banding thresholds...
      21-08-2017, 17:03 PM
    • Will it trigger SDLT charges?
      londonrulz
      I was thinking through the process of informing HMRC about unequal shares of benefitors(in this case me and my spouse). As I understand, a form 17 along with evidence of unequal shares must be submitted. Evidence being declaration/deed of trust.

      Providing below details, will my spouse...
      02-08-2017, 13:02 PM
    • Reply to Will it trigger SDLT charges?
      Kape65
      If there is a mortgage on the property care must be taken only to transfer the net equity between the couple. Not only is a transfer of the mortgage interests likely to breach the terms of the mortgage with the lender, but being a transfer of an interest in land it could also trigger a stamp duty land...
      21-08-2017, 15:57 PM
    • Stamp duty rates for Limited Company
      klinka01
      A bit of background: I am interested in getting on to the buy-to-let property ladder, to give myself passive income on top of my daytime job. I intend to start a limited company so that I can save on some tax. As such, I will be buying any rental properties via the limited company.

      However...
      21-08-2017, 11:08 AM
    • Reply to Stamp duty rates for Limited Company
      jpkeates
      Yes, they're the same rates.
      The way they're accounted for can be different, though as a company doesn't have capital gains tax to account for.
      21-08-2017, 12:29 PM
    • Reply to Clarification on ATED
      leaseholder64
      https://www.gov.uk/guidance/annual-t...-your-property seems fairly clear already, but the way I read it (as someone without a personal interest):

      1) Open market value. If you paid for it at full market value, from an independent...
      21-08-2017, 11:56 AM
    • Do I have to pay capitol gains tax?
      globularity
      I am currently living with my parents and have rented my flat out, this is the only property I own, and I lived there 12 years renting and 1 year as an owner. I am happy to move back in if this helps me to not have to pay capitol gains. Just read somewhere if its your principle home theres no capitol...
      17-08-2017, 22:13 PM
    Working...
    X