Urgent Landlord tax reclaim opportunity

bettyb1

I've come accross a great time limited tax saving opportunity if you are a landlord of a shared house (e.g. a student let) - an HMO (House of Multiple Occupancy).

HMRC have tighted up the rules on claiming tax relief on fixtures and fittings in such properties from 22 October 2010 (can be between 10% and 25% of the property value). However, it is currently possible to go back and recognise F&F expenditure incurred in previous years, including on purchase of the property itself whenever that occurred, to create a 'pool' of tax relievable expenditure going forward.

If you get in quick, you can amend the 2008/9 tax return to get some tax relief in that tax year, but you'll need to hurry as the 2008/9 tax return cannot be amended after 31 JANUARY 2011.

If you miss this deadline, all is not lost as the "pool" can be brought in in 2009/10 and claimed in that year and future tax years.

Where this relief creates a loss in any tax year from the rental business, the loss can be set against other sources of income (e.g. salary) in that tax year or the following tax year.

I've found a useful guide at tax-saving-ideas .co.uk which I passed to my accountant who has sorted out the claim for me. There are special firms offering to do these claims, but they can be costly.

Hope this helps :beer:

Browntoa

mmmm...suspect spammy post to promote a web site that was only registered on 12th Dec 2010

£19.95 for an e-book

on a badly designed site built using free site builder

http://www.350.com/

chrismac1

the word SPIV comes to mind.