Can I buy renovation goods for property before actually owning it

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    Can I buy renovation goods for property before actually owning it

    Hi, l'm a first time landlord or I will be in 4 weeks when the property completes. My question is can I buy stuff for the property ie kitchen, carpets, paint before l actually own the property and still use these receipts for tax returns. Regards Lee

    #2
    Yes to the timing - they're being purchased for the rental property.
    They become tax allowable on the day the property is first rented.

    However, not all the items you list are allowed against income - carpets are furnishings, for example and exempt, whereas laminate floor, lino or tiles are fixtures.
    Talk to your accountant.
    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).

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    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      Hi Andrew
      First of all I've got an initial appointment to speak to an accountant on Friday!

      Can I just check where you write ' ...at death 1/6th of the value of the whole would have been deemed to pass to you for CGT purposes as the survivors would share the whole'.

      Does...
      08-12-2021, 18:02 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by jpkeates
      Even if probate wasn't mandatory, it would probably have been useful.
      08-12-2021, 13:44 PM
    • 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.

      1. Previous family home rented out - terrible tenants - left owing rent, bad repairs etc. [usual story for some] subsequently property not let for 2 years for a number of reasons while...
      06-12-2021, 13:51 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by AndrewDod
      Yes this would be the case if it was jointly owned (not as tenants in common). The situation would be that at death 1/6th of the value of the whole would have been deemed to pass to you (for CGT purposes), as the survivors would share the whole.

      So for the 3 periods you would be taken...
      08-12-2021, 12:51 PM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      jpkeates
      There was no estate as such, property jointly owned - they were both retired at time of purchase living on small pensions, hence I bought with them so they could stay in the home they'd been renting from council from early 1950s to March 1982 at time of purchase. And I paid for the initial...
      08-12-2021, 10:50 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by jpkeates
      I don't know the historic thresholds, but it's bizarre that there's no probate for both of your parents, their estate has to be tiny for that to be possible nowadays.
      It's probably too late for HMRC to do anything about that, but that process sets the values for CGT calculations later on, so it's...
      08-12-2021, 10:28 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by reluctantlandlord1976
      Morning Andrew
      Thanks for your response early this morning and clarifying I have to make three separate calculations [the split wasn't clear on the CGT calculator].
      I understand the query on the value but this is an ex council house on a council estate [I feel I have to defend it here as...
      08-12-2021, 08:45 AM
    • Reply to Caught out by changes to Capital Gains Tax
      by AndrewDod
      As gordon indicates you need to consider it in three entirely separate parts, each have their own gain and calculation --

      The part YOU owned before Death 1
      The part YOU owned between Death 1 and Death 2
      The part you owned after Death 2

      Based on the values you give...
      08-12-2021, 05:52 AM
    • 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.

      a] £80k Jan 2021 sale price.
      b] As property purchased before...
      08-12-2021, 00:55 AM
    • 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:

      Purchased March 1982 as joint tenancy - so equal split of 33 1/3% each party
      Parent 2 died September 2007 - as joint tenancy I inherited their share - so at this point I own 100% of property...
      08-12-2021, 00:41 AM
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