Tax Questions

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interest on BTL mortgage claimable or not in the coming years ? by Pobinr Started by Pobinr, 30-11-2015, 15:11 PM	4 responses 606 views 0 likes	Last Post by Pobinr 30-11-2015, 19:18 PM
Deductible expenses by RayReardon Started by RayReardon, 27-11-2015, 18:45 PM	19 responses 1,198 views 0 likes	Last Post by RayReardon 30-11-2015, 19:10 PM
Transferring ownership to spouse by pebblepebble Started by pebblepebble, 29-11-2015, 19:57 PM	12 responses 1,048 views 0 likes	Last Post by pebblepebble 30-11-2015, 18:41 PM
3% stamp tax surcharge for corporate entities by fathippy Started by fathippy, 30-11-2015, 13:57 PM	5 responses 622 views 0 likes	Last Post by macgrl 30-11-2015, 16:35 PM
PPR/Lettings Relief after declaration of trust by Metanet Started by Metanet, 29-11-2015, 12:18 PM	2 responses 616 views 0 likes	Last Post by Gordon999 30-11-2015, 13:08 PM
how to calculate tax if I reinvest the rent to something else? by daxu Started by daxu, 29-11-2015, 18:00 PM	3 responses 424 views 0 likes	Last Post by jpkeates 30-11-2015, 09:44 AM
Taxation of sinking fund contributions by dhjjessel Started by dhjjessel, 03-07-2015, 11:18 AM	7 responses 2,107 views 0 likes	Last Post by ram 29-11-2015, 16:06 PM
3% SDLT charge by philip cooper Started by philip cooper, 28-11-2015, 19:13 PM	3 responses 648 views 0 likes	Last Post by jpkeates 29-11-2015, 10:25 AM
BTL stamp duty changes by PeteW92 Started by PeteW92, 26-11-2015, 20:07 PM	4 responses 1,530 views 0 likes	Last Post by PeteW92 27-11-2015, 12:03 PM
Tax implications if BTL flat while renting another? by vectra753 Started by vectra753, 25-11-2015, 22:58 PM	3 responses 731 views 0 likes	Last Post by Gordon999 26-11-2015, 20:30 PM

VAT on Rent: Commercial lease for residential dwelling

afternoontea

Hello LandlordZone

If a commercial lease was used by a landlord to let a block of residential dwellings to a tenant, a company, who subsequently let the individual flats to their subtenants - could/would VAT be charged by the landlord on the rent?

It's my understanding that...
- Channel: Tax Questions
10-12-2018, 14:46 PM
Reply to VAT on Rent: Commercial lease for residential dwelling

flyingfreehold

resi is strictly speaking an "exempt supply". Hence when a block of flats is built then sold by a registered trader, a VAT invoice is raised showing a rate of Nil, and nil tax, however the seller can recover its VAT at the appropriate rate. Recovery of VAT is restricted to instances wherein...
- Channel: Tax Questions
13-12-2018, 22:13 PM
Reply to VAT on Rent: Commercial lease for residential dwelling

leaseholder64

I believe they also need planning consent for change of use. There is an exemption, but that is designed for people who use it as their home, for most of the year.
- Channel: Tax Questions
11-12-2018, 15:54 PM
Moving from accruals to cash basis, uk landlord

royboy1

Hi, i got one more question.

I’m moving over to cash basis accounting for 2017-2018 tax year.
Now, I have done the one off adjustment figures, rent and insurance.
But I got one question, I paid my ground rent and service charges for the previous tax year late, the invoice...
- Channel: Tax Questions
10-12-2018, 13:10 PM
Reply to Moving from accruals to cash basis, uk landlord

Gordon999

Roy,

I thought cash basis is allowed if the the rental income is under £15K . But you have quoted under £150K ???

What kind of accruals do you have ? Is it only the late payment for annual service charge bill after April 6th ?
- Channel: Tax Questions
11-12-2018, 14:34 PM
Reply to Moving from accruals to cash basis, uk landlord

royboy1

Hi Jpkeates.
Thank you for your reply.
But i must admit you got me doubting it now.
and your right about a working sheet, I can't find one as well.

2017-2018 is the year cash basis becomes the default method for landlords
under 150k, so not sure what to do now....
- Channel: Tax Questions
11-12-2018, 10:29 AM
Reply to VAT on Rent: Commercial lease for residential dwelling

Gordon999

If the tenant lives in the property and offered the flat during his 4 weeks holiday absence away, the property will still be residential.

If the tenant is a company offering short term lets "like a hotel business ", then you and the tenant should contact the VAT office.
...
- Channel: Tax Questions
11-12-2018, 09:31 AM
Reply to Moving from accruals to cash basis, uk landlord

jpkeates

That's a new one on me, but, based on that, you're right and I'm wrong....
- Channel: Tax Questions
11-12-2018, 09:14 AM
Reply to Moving from accruals to cash basis, uk landlord

royboy1

Hi Jpkeates
Thank you for your reply
I have had a look at HS2222 form again and this is a part of it
am i reading this all wrong,? very possible. see below.
but this is saying you can change, from traditional accounting ( accruals ) to Cash basis.

Thank you for your...
- Channel: Tax Questions
10-12-2018, 22:16 PM
Reply to VAT on Rent: Commercial lease for residential dwelling

afternoontea

Thanks Gordon. Is this the case in all circumstances? What if the tenant was subletting the building as serviced apartments, for instance? Or if the tenant was subletting apartments for shorter durations (e.g. <28 nights) for part of the year?
- Channel: Tax Questions
10-12-2018, 21:35 PM

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