Offsetting rental expenses

Badgersrus

AdrianC wrote: »

Question away. It won't make the slightest difference to what you need to do on your next tax return.

(BTW, I don't think Phil Hammond reads or posts here, and he's the one you really ought to be taking it up with)

When I bought the flats my solicitor told me I had to pay the 3% surcharge, plus the stamp duty on the total purchase price. I did some investigation and found out, firstly, I got multiple dwelling discount which cut duty in half . I then argued with HMRC I should also be able to nominate one of the dwellings as my own residence, since i had sold my main home and should not have to pay the 3% surcharge on my own home (which I now rent out). There was no precedent for this in the guidance and I had to write in to HMRC for a ruling, which was in my favour. SO, yes, questioning can make a difference.

00ec25

Badgersrus wrote: »

I then argued with HMRC I should also be able to nominate one of the dwellings as my own residence, since i had sold my main home and should not have to pay the 3% surcharge on my own home (which I now rent out). There was no precedent for this in the guidance and I had to write in to HMRC for a ruling, which was in my favour. SO, yes, questioning can make a difference.

well there sure is a precedent and a trail of broken people if you try that on when it comes to CGT and selling. For it to be a main residence you have to have occupied it. Fact.

Badgersrus

00ec25 wrote: »

well there sure is a precedent and a trail of broken people if you try that on when it comes to CGT and selling. For it to be a main residence you have to have occupied it. Fact.

Sure, but it is not the intention to live in it at all or buy another home in the UK. I would have paid CGT either way so I may as well take the discount on the SDLT.

ValiantSon

Badgersrus wrote: »

Sure, but it is not the intention to live in it at all or buy another home in the UK. I would have paid CGT either way so I may as well take the discount on the SDLT.

So you got HMRC to reduce the stamp duty because you would be living in one of the flats, but then you haven't lived in it? This is known as fraud. Fraud carries a potential sentence of 10 years imprisonment.

Badgersrus

ValiantSon wrote: »

I, for one, have no interest in helping you find a way to get the state (and therefore every taxpayer) to foot the bill for your rent.

Don't get me started on tax. Unless you earn £50k+ I'd reckon in this transaction alone I've paid more tax this year than you pay in 20 years. Property transaction taxes are a disproportionate, non-progressive penalty that discriminate against a particular section of the community. Nothing wrong with trying to do what you can to minimise what you pay. Furthermore, I'm paying more tax now than if I'd remained in my home and not bought the flats! You should be thanking me for my excessive contributions to the Exchequer

Crashy_Time

https://www.theguardian.com/politics/2018/feb/01/labour-plans-landowners-sell-state-fraction-value

Badgersrus

ValiantSon wrote: »

So you got HMRC to reduce the stamp duty because you would be living in one of the flats, but then you haven't lived in it? This is known as fraud. Fraud carries a potential sentence of 10 years imprisonment.

A man buys his new home. Before he moves in he gets a job offer abroad and instead of living in it chooses to let it out, move overseas and perhaps return 20 years later and either live in it or maybe sell it. That's not fraud. One is perfectly entitled to do what one wishes with your one's home - rent it out from day 1 or never. The state gets its cut in tax on rental income and, when the property is sold, a proportion of CGT payable on a pro-rata basis depending upon the split of personal and rental use.

Gabbs_the_Newt

Badgersrus wrote: »

Don't get me started on tax. Unless you earn £50k+ I'd reckon in this transaction alone I've paid more tax this year than you pay in 20 years. Property transaction taxes are a disproportionate, non-progressive penalty that discriminate against a particular section of the community. Nothing wrong with trying to do what you can to minimise what you pay. Furthermore, I'm paying more tax now than if I'd remained in my home and not bought the flats! You should be thanking me for my excessive contributions to the Exchequer

Unfortunately a potentially interesting discussion about tax policy and tax efficiency opportunities is being derailed by ad hominem attacks, a shame. I have enough !!!!!!!! clients who will pay £500 an hour, I don’t need to deal with such people for free on a Friday. I wish you well sir.

ValiantSon

Badgersrus wrote: »

Don't get me started on tax. Unless you earn £50k+ I'd reckon in this transaction alone I've paid more tax this year than you pay in 20 years. Property transaction taxes are a disproportionate, non-progressive penalty that discriminate against a particular section of the community. Nothing wrong with trying to do what you can to minimise what you pay. Furthermore, I'm paying more tax now than if I'd remained in my home and not bought the flats! You should be thanking me for my excessive contributions to the Exchequer

Well, given that you know exactly nothing about my income and tax status your comments are rather foolish. For all you know I may pay income tax at the additional rate.

The fact that you have paid a large(ish) tax bill on your transactions is completely irrelevant when considering whether the taxpayer should be footing the bill for your rent. Funnily enough I have never tried to look for a wheeze to make the taxpayer foot the bill for my living expenses. They are my expenses and I don't expect anyone else to pay them.

Property taxes are not discriminatory - don't be silly. You were not obliged to sell your house and buy a block of flats. You made that choice of your own free will and, as one of the ways of raising taxes to fund all of the many services that you benefit from, you had to pay some tax. My violin is staying in its case.

I see no reason to thank you for paying the taxes due, or are you going to thank me for paying my taxes too? This could turn in to a great big love-in! You live within our society and you benefit from all kinds of services and protections as a member of that society, but these come at a cost and that cost has to be borne by the citizenry at a level commensurate with their ability to pay. You clearly were able to pay so all you have done is met your obligations as a citizen of the country. No thanks are due.

Of course, if I have understood what you previously wrote, you haven't actually met your obligations and have instead committed fraud. So, rather than thanking you I should be doing everything I can to bring this to the attention of HMRC, who I'm sure would be delighted to prosecute you.

Badgersrus

Crashy_Time wrote: »

Your link to compulsory purchase

I know. Though Property Rights likely trump this. Given 90% of politicians and Lords are land owners I doubt it'll get far.