how to get tax rebate for renting out

Soldierearth54

I recently had someone completing an EPC on a property I'm renting.

He advised my partner he would forward me a receipt to allow me to reclaim tax or something like that.

Does this sound right and if so, how do I go about it?

TrickyDicky101

When you determine the profit from the letting, the cost of this EPC counts as an allowable expense which means you can deduct it from your taxable profit.

bigadaj

You can claim the amount spent against rental income. Any repairs or replacements are valid for claim as an expense, you can't claim for any improvements though, as these are deemed to enhance the value.

Kynthia

When you declare your rental income to the HMRC (note that you have to declare the income even if you think you aren't making a profit and won't have tax to pay) you will then get to offset 'allowable expenses' in order to calculate your taxable profit/loss. Not all expenses you incur are allowable in order to reduce your tax liability, such as the repayment element if your mortgage isn't. Your EPC on the rental property is an allowable expense.

agrinnall

But bear in mind that you must be making a profit on the rental in order to for an allowable expense to be effective. The fact that you're even asking the question makes me wonder if you are making a profit at all, or if you are whether you are declaring it - I'd expect any LL (even an accidental one) to have at least some knowledge of the tax situation for their business.

00ec25

agrinnall wrote: »

But bear in mind that you must be making a profit on the rental in order to for an allowable expense to be effective.

rubbish - you can deduct allowable costs from your rental income and end up with a (taxable) loss from day one. The only restriction is that all you can do with a proieprty related loss is carry it forward to offset against future profits, you cannot offset a loss against any other taxable income (eg income from your job)

OP it really does sound like you have no idea what you are doing and should seek professional advice asap before HMRC catches you and you face penalties

gross rent received - allowable costs = taxable net profit
you must declare to HMRC any amount of gross rent even if its only £1. You must complete a tax return if your net profit is >£2,500 or your gross rent is >£10,000, if under either or both of those figures you still need to inform HMRC and its up to them how they require you to supply your information, could be by letter or could be by a formal tax return

agrinnall

00ec25 wrote: »

rubbish - you can deduct allowable costs from your rental income and end up with a (taxable) loss from day one. The only restriction is that all you can do with a proieprty related loss is carry it forward to offset against future profits, you cannot offset a loss against any other taxable income (eg income from your job)

Not the first time you've made an offensive response to something I've posted, I suggest you be a bit more considered.

While your answer is more correct, mine was right in terms of the OP talking about a tax refund - in these circumstances, as you point out yourself, if you're not paying any tax you can't get a refund.

G_M

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Soldierearth54

Thanks. How do I go about claiming?

BitterAndTwisted

If you'd read the responses correctly and understood them you would know that you can't "claim". You offset this expense against rental income when you do your tax-return.

That's if you are a landlord. The use of the term "renting" as opposed to "letting" suggest that you're not a landlord at all but a tenant

Soldierearth54

agrinnall wrote: »

But bear in mind that you must be making a profit on the rental in order to for an allowable expense to be effective. The fact that you're even asking the question makes me wonder if you are making a profit at all, or if you are whether you are declaring it - I'd expect any LL (even an accidental one) to have at least some knowledge of the tax situation for their business.

If not for seeking advice what is this forum for? Were you born with the infinite knowledge of the landlord world...? No, you had to ask someone!!