Question on Tax Expenses - Trust Fund

konn1ch1ha

Hi all,

First time post in this sub, so go chill!

I am curious how expenses should be declared on a SA if my trust fund has helped me with them? For example, I spend £1000 (property maintenance related) on an expense and goes into my overdraft, then spend another £1500 on another expense, putting me further into my overdraft, but then my trust fund reimburses me the money to take me out of my overdraft - can I declare these as expenses despite my trust fund giving me the money for them? It's way more complicated than this, but just an example.

I feel like I shouldn't, and haven't declared them - but can I?

TIA

dori2o

Assuming that you are declaring rental income and that the expense is correctly incurred, It matters not where the money comes from to pay for the expense. All that matters is that the expense is allowable and applicable to the property. See here for more information on property income
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2020

Keep_pedalling

Is the property concerned held within the trust?

konn1ch1ha

dori2o wrote: »

Assuming that you are declaring rental income and that the expense is correctly incurred, It matters not where the money comes from to pay for the expense. All that matters is that the expense is allowable and applicable to the property. See here for more information on property income
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2020

Yes, I declare all income from property. I just wondered that because I didn't technically pay for it, is it an expenses...?

So I should declare the expenses regardless if my trust fund paid for it or not?

konn1ch1ha

Keep_pedalling wrote: »

Is the property concerned held within the trust?

No. It's my own place that has nothing to do with the trust.

BoGoF

You can't claim tax relief for the upkeep of your own home.

konn1ch1ha

BoGoF wrote: »

You can't claim tax relief for the upkeep of your own home.

It's not upkeep; it's rented out to a tenant. I don't live there. And it's repairs for showers and broken ovens etc etc. Not upkeep. Surely these are deductible?

BoGoF

Ahh sorry, when you said own place I thought you meant your current abode.


These costs would normally be deductible but the Trust Fund thing is complicating the issue and I don't know the answer unfortunately. More info re the Trust Fund may help.

konn1ch1ha

BoGoF wrote: »

Ahh sorry, when you said own place I thought you meant your current abode.


These costs would normally be deductible but the Trust Fund thing is complicating the issue and I don't know the answer unfortunately. More info re the Trust Fund may help.

But what's your take on the original question re the trust etc?

konn1ch1ha

BoGoF wrote: »

Ahh sorry, when you said own place I thought you meant your current abode.


These costs would normally be deductible but the Trust Fund thing is complicating the issue and I don't know the answer unfortunately. More info re the Trust Fund may help.

Sorry, completely missed the second section of your reply, I'll post in there.

konn1ch1ha

BoGoF wrote: »

Ahh sorry, when you said own place I thought you meant your current abode.


These costs would normally be deductible but the Trust Fund thing is complicating the issue and I don't know the answer unfortunately. More info re the Trust Fund may help.

Sorry for the mass spam of messages!

The trust fund is basically an inheritance pot that myself and three other beneficiaries receive. Though I have already received my full share a few years ago.

This time, my solicitor helped me because I was just eating further into my overdraft because of expenses. These expenses were paid for before I received the reimbursement for the trust fund.

This is why I question whether I should include the expenses or not because they were paid back to me from said trust fund.