Offsetting tax against landlord's own house repair bills

  • Filter
  • Time
  • Show
Clear All
new posts

    Offsetting tax against landlord's own house repair bills

    I have a fulltime job, I also rent out a house. I claim a proportion of my home's running costs against my tax. Can I also claim my own home's repair bills against my overall tax bill?

    No - this personal expenditure.


      Be careful about claiming for running costs against your home.

      When you sell it there are nasty CGT traps you can encounter if the property wasn't simply your private residence.
      Right now it's not a big risk unless you claim a big proportion, but who knows what the CGT regime will be in a few years time.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


        Many thanks for your replies.............what a shame!!!


        Latest Activity


        • Reply to Let Property Campaign.
          by jpkeates
          The 10% was for furnishings, so built in stuff should be ok to claim.
          The bathroom refurb depends on what was done if it was simply a replacement, it's maintenance, if it was a significant upgrade, it's likely to be part capital/part maintenance.
          If it's a new bathroom, it's probably ca...
          16-09-2021, 08:37 AM
        • Let Property Campaign.
          by armour
          Hi all,

          A friend of mine has been renting out a flat since 2004 and has not declared any of the income to HMRC in all that time.

          She wants to come clean and pay the accumulated income tax she owes by making a non-prompted disclosure using the Let Property Campaign system....
          13-09-2021, 13:45 PM
        • Reply to Let Property Campaign.
          by armour
          Seems pretty clear there JP. I'll go ahead and alter my calculations

          One more thing, My friend had a bathroom refurb and a built in oven and hob replaced during the period when the flat was let furnished. I'm pretty sure that these costs can be detucted in addition to the 10% W&T, but...
          15-09-2021, 14:06 PM
        • Reply to Let Property Campaign.
          by jpkeates
          The wear and tear allowance was 10% of the rent before any deductions.

          The only exceptions were always poorly understood and were always a little odd.
          You had to deduct items which would normally be borne by the tenant but, for some reason, weren't.
          So, if the landlord included...
          14-09-2021, 11:57 AM
        • Reply to Let Property Campaign.
          by armour
          Hi again,

          The deed is done. My friend registered for the Let Property Campaign scheme an hour ago.

          The next step is HMRC sending her a disclosure number by post within 14 days.

          As I am trying to sort out her tax liability over the past 16 odd years, I'd appreciate...
          HiI understood that 10% wear and tear on profit is income less costs i.e. all costs relating to the property (Mortgage Interest, Management costs, rep
          14-09-2021, 11:25 AM
        • Reply to Let Property Campaign.
          by armour
          Thanks for the replies.

          JP, I think my friend wants a clean break with HMRC rather than fighting it to minimise her tax bill as you suggest she could do. In any case, what with higher mortgage interest rates and her eviction costs in the early years, the tax liability prior to around 2010...
          13-09-2021, 18:17 PM
        • Reply to Let Property Campaign.
          by Gordon999
          Has your friend lived in the property at any time ?

          Does your friend's annual income from " job plus rental property" exceed the annual personal allowance, during each of the last 6 years.?

          Does taxable income come under the 20% tax rate each ye...
          13-09-2021, 14:37 PM
        • Reply to Let Property Campaign.
          by jpkeates
          The whole idea of the campaign is to collect the tax and not penalise people who come clean too much.

          Personally I'd use an accountant, because I don't think HMRC can normally go back much further than six years, so there's possibly a trade off of six years tax plus possible hefty penalties...
          13-09-2021, 14:24 PM
        • CGT calculation
          by armour999
          Hi all,

          This will probably be a bit incoherent so apologies in advance.

          A friend of mine has asked me to work out her CGT liability for a flat she is selling. The bare facts are these:

          She bought the flat in May 2000 at a purchase price of £78,000. The completion...
          11-09-2021, 17:50 PM
        • Reply to CGT calculation
          by armour
          Thanks all. It seems I had a couple of errors there, thanks for pointing them out.

          There is more to this though. Please see my next thread titled 'Let Property Campaign'.
          13-09-2021, 13:46 PM