Where do these property expenses fit on the tax return?

lonestarfan

I'm doing a SA form for 2013/14 for a BTL purchased with a mortage during that year. Not sure where I put the following expenses in whihc questin/box on the form or if they are allowed. Can anyone advise please. If not then do I just contact HMRC and ask them?
Solicitors fees
Stamp duty
TT charge
Survey fee
Arrangement fee
Booking fee
Homebuyers survey
Own insurance fee
Gas report on condition of the gch boiler at the property
Environmental report
Local search
Bankruptcy search
OS1 Land Registry Search
Drainage enquiries
Many thanks.

Pennywise

All the costs incurred on your solicitor's completion statement, when buying the property don't go on the SA return against income. You carry them forward to set against the future capital gains tax on the profit you make when you eventually sell it.

Costs for arranging the mortgage are set against income over the period of the mortgage - put down under finance charges. If your mortgage is 15 years, you claim 1/15th every year.

Property insurance goes against the box where it mentions insurance.

Gas safety check goes in the box where it mentions property maintenance and repairs.

Also remember you can only claim the interest element of your mortgage, not the capital repayment element.

lonestarfan

Thanks a lot. What a shame I can't put the sols/stamp duty ! Didn't realise I use that when I sell so thanks for that info.
So box 26 loan interest and other financial costs I can put in there
Survey fee basic for mortgage co.
Homebuyers survey
Gas survey
Arrangement fee
Booking fee
TT charge - charged by mortgage company not the solicitor for the funds
Own insurance fee - charged by mortgage company as I arranged my own ins.
Do I really have to add those up and divide them by 25 years which is what the mortgage is?

booksurr

lonestarfan wrote: »

Thanks a lot. What a shame I can't put the sols/stamp duty ! Didn't realise I use that when I sell so thanks for that info.
So box 26 loan interest and other financial costs I can put in there yes
Survey fee basic for mortgage co. NO - that is a cost associated with the purchase of the property, not its running costs - it goes against your eventual CGT
Homebuyers survey NO - that is a cost associated with the purchase of the property, not its running costs - it goes against your eventual CGT
Gas survey for what?
Arrangement fee 1/25
Booking fee 1/25
TT charge - charged by mortgage company not the solicitor for the funds define TT ???
Own insurance fee - charged by mortgage company as I arranged my own ins. 100% charged in the year to which it relates
Do I really have to add those up and divide them by 25 years which is what the mortgage is? YES

what is a TT charge?
what sort of gas survey? If you mean the annual LL gas safety certificate then yes it goes against annual profit. If you mean a survey to inform your purchase then no it is a capital cost

you need to learn the difference between a revenue and a capital cost
http://accounting-simplified.com/financial/fixed-assets/capital-and-revenue-expenditure.html
https://www.gov.uk/government/publications/hmrc-capital-vs-revenue-expenditure-toolkit

lonestarfan

You two are really really helpful thank you.
TT is a telegraphic transfer that the mortgage company charged me to send the mortgage advance to the solicitor .
The gas survey was something I wanted on the gas central heating and boiler as a report on its condition to make sure I wasn't buying a house with a boiler that doesn't work.
Thanks for the links I will read up and learn.
Do you think I can put TT then in box 26 as its a fee for the mortgage.
Can Gas report go in box 25 - I think you'll say no as its a cost associated with the purchase not its running costs

lonestarfan

Am I allowed to put anything in box 36 in respect of 10% wear and tear allowance?
My property is let unfurnished but has a fridge, a washing machine and carpets.
Not sure if I'm allowed to claim wear and tear if it's unfurnisehd. If I can then what is it 10% of?
Many thanks.

Pennywise

lonestarfan wrote: »

Am I allowed to put anything in box 36 in respect of 10% wear and tear allowance?
My property is let unfurnished but has a fridge, a washing machine and carpets.
Not sure if I'm allowed to claim wear and tear if it's unfurnisehd. If I can then what is it 10% of?
Many thanks.

No, wear and tear allowance is for furnished lettings only which means all the basics of living, i.e. bed, table, chairs, etc. It's an all or nothing. You'll get no tax relief for the fridge and washing machine.

lonestarfan

I have got all my figures together and have made a very small profit. I will input it all online when my user id and online registration stuff comes in the post by 15 Feb as I only ordered it on 31 Jan.
I've never done an online return before as this is my first year so don't know what to expect when I input it.
Will it calculate the tax on my profit whilst I'm online and I can pay it there and then from my debit card or do they send me a bill? I realise its too late to get it collected through my tax code although now I've done this years return and managed it I'll make sure I do next years well in advance now I've got experience. When will I get 2014/15 return? Thanks everyone.