Accidental landlord needs basic tax advice

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  • TaxationPete
    replied
    You can also claim 10% of the gross income as Wear and Tear as it is furnished. Read up on this on the HMRC web site. The owner informs HMRC they are a landlord and they will issue the appropriate Self Assessment tax return at the appropriate time. I suggest you buy a couple of books on B2L. Regards Peter

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  • CoinOperatedBoy
    replied
    Thanks Peter, it's going to be let as a furnished property.
    I've been trawling the taxation section but wasn't able to find anything specific on this; I think the best thing to do will probably be to call HMRC and see if they can advise on which forms we're going to need.

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  • TaxationPete
    replied
    As has been said it is her income taxed against her. Morgage interest, rates, builging management fees, maintenance, buildings insurance, gas safety certificate, electrical safety cert every 5 year, agents fees, etc. etc. are all deductible from the rental gross income. You need to read up on what you can claim against the income. Is it furnished or unfurnished. Regards Peter

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  • CoinOperatedBoy
    replied
    I thought that may be the case. So will we need an accountant to sort this income out or can it be easily done on the HMRC website?

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  • Telometer
    replied
    If it's her flat then the rental income is hers. Not yours.

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  • CoinOperatedBoy
    replied
    Not married. The flat is in her name and she'll only be working part time while doing this course (2 years).

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  • Telometer
    replied
    You will need to complete a tax return.

    You are taxed on your profit after interest and other bank income.

    Are you married/what? Who owns the flat?

    Leave a comment:


  • CoinOperatedBoy
    started a topic Accidental landlord needs basic tax advice

    Accidental landlord needs basic tax advice

    Hi all, first post here!
    My other half and I are shortly going to be moving to Cardiff to do a Masters course so will be letting out a 1 bedroom flat in London while we rent a property for ourselves.
    Never having done this before, the question I have is how is tax levied on any income from the rental of this property? Is the amount simply added to my or to her annual income and taxed at the appropriate rate of income tax or is it more complicated?
    We're not sure if we're going to go through a lettings agent yet, but is we do, is this something that they will sort out for us? Any advice would be very much appreciated.

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  • 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 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
  • 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
  • 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 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
  • 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
  • Reply to CGT check appreciated, thanks in advance!
    by tatemono
    thanks for your comments everyone. Alas Gordon999, although you were aware of my first statement that the property was shared between two of us, the figures I gave were already halved. You then went on and halved the gain which effectively halved the figures once more! My gain is around the £22K figure...
    17-10-2021, 12:57 PM
  • Need LTB on our home to buy another property to live in - help please?
    by Advice seeker
    Hello

    We want to make an offer on a property but the highest current offer doesn't need to a sell anything to purchase, so in a better position than us.

    If we do a LTB on our home (so we are in same position) with a 6 month rental contract then sell asap after this to be within...
    06-10-2021, 15:36 PM
  • Reply to Need LTB on our home to buy another property to live in - help please?
    by Advice seeker
    Thank you JP and Gordon, really, this is very helpful to me!

    All being well JP I can get this all done within the 9 months, am aware this is a challenge! Would have been so much easier when 18 or 36 months!

    On the tenant side Gordon, I am in contact with a university accommodation...
    16-10-2021, 19:33 PM
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