Can I claim a tax deduction?

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

    Can I claim a tax deduction?

    I bought a property in 2007 for me to live in. Around 2009 I had to take a loan for £9000 to pay for roof repairs, to replace some of the heating and guttering. I have started letting the property out but I am still paying the loan. Can I claim the interest as a tax deduction? They where essential repairs at the time but I don't know if I kept any invoices as I was never planing to let the property at the time.

    #2
    There's no perfect answer.

    If you made the repair in 2009, when you were living in the property and have only recently started using it for a rental business, the repair has nothing to do with making the property available for rent, it was simply a necessary repair to your home and therefore not a business expense. That rules out the connected interest.

    If the repair was carried out specifically in order to make the property rentable, it would be allowable and the interest should also be allowable as a connected expense,
    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).

    Comment


      #3
      I'm thinking that the repair and the interests on the loan might be separate issues.

      Indeed, the loan and any mortgage are used to finance the property as it was when added to the business. As such, all the interests might be allowed as a financing cost.

      Don't take my word for it, though...

      Comment


        #4
        Seems like personal expenditure to me.

        Comment

        Latest Activity

        Collapse

        • Reply to HPI out-pacing PRR accumulation
          by lllccc
          Hi Gordon, unfortunately it was not, hence the question.
          04-12-2021, 16:07 PM
        • HPI out-pacing PRR accumulation
          by lllccc
          I wondered if anyone else has been in this situation and what would you do about it? I now only own the one property (and live in it), but due to substantial renovation period before moving in the CGT will only increase now (assuming HPI increasing at 3.6% which is not unreasonable). I didn't understand...
          04-12-2021, 14:20 PM
        • Reply to HPI out-pacing PRR accumulation
          by Gordon999
          If the property has been your "main residence" since purchase, there is no tax on capital gain .
          04-12-2021, 14:40 PM
        • Reply to Will they raise taxes again?
          by Gordon999
          The Daily Mail reported on 29 Oct 2021 the 1.25 p increase for social care levy commencing in 2022 , will take £16 Bil from our pockets. The freezing of personal allowance for income tax at £12570 until 2026 will take £19 Bill by 2025/2026.
          ...
          02-12-2021, 11:18 AM
        • Will they raise taxes again?
          by JK0
          My accountant just finished my 2020/21 tax return, and my income is half of the previous year. I did not think it would be quite that bad. (Half my tenants moved out, and I had a job to replace them. Plus had to get fourteen EICR's!)

          I'm guessing you guys are in a similar boat. Never mind...
          27-11-2021, 20:20 PM
        • Reply to Will they raise taxes again?
          by Gordon999
          Corporation tax for large companies ( over £250K profit ) will be raised from 19% to 25% rate commencing from April 2023.
          30-11-2021, 21:35 PM
        • Reply to Corporation Tax
          by Gordon999
          There seems to be 2 problems ( I am not an accountant ) :

          (1.) The company has to pay £30,000 tax due to revaluation of property asset increased higher by £150,000 ( estimated). Does it have the cash in its bank account to pay ?

          ( 2) husband owns one third interest of property...
          30-11-2021, 14:09 PM
        • Reply to Will they raise taxes again?
          by theartfullodger
          Taxes bound to go up, huge amounts to pay for Covid & BR*X*it. Death & taxes, death & taxes.

          Holding off working out my position, wishing to remain cheerful for Christmas.

          Best wishes to all...
          28-11-2021, 10:45 AM
        • Reply to Will they raise taxes again?
          by Neelix
          ^^ please don’t take this the wrong way but £10 k down on what turnover or number of properties?

          i’ve done a lot of EICRs and remedial work over the last 18 months and a lot of it was because properties hadn’t been inspected and some were just dangerous....
          28-11-2021, 10:29 AM
        • Reply to Will they raise taxes again?
          by jpkeates
          I'm about £10k down and it's mostly electrical work.

          I can't see this government putting up taxes anymore before the next election, although there's nothing to say that they won't figure out how to tax landlords more specifically - there's few votes lost there.

          My candidate...
          28-11-2021, 10:07 AM
        Working...
        X