Is tax relief for landlords given as a lump sum, or knocked off the bill throughout the year?

saajan_12

The poster case for why family and business shouldn't mix.. 

Chiyo said:

I’m hoping that I can help him persuade his parents to finally complete the repairs by explaining that they’d get their money back via tax relief on the full market rent that he pays. My question is, would this be paid in a lump sum a few weeks after putting in the claim? As I believe that this is the only thing that they’d agree to.

In answer to your actual question, there no cash payout for any relief. The LLs would pay tax on the net (rent less allowable expenses) at whatever intervals they pay tax. Note in terms of amounts , they would only 'get back' the tax portion not the whole amount spent on windows. 

eg say
gross rent = £10k
other expenses = £0
windows cost £3k
higher rate tax payers @ 40% far in excess of threshold

Without fixing windows, they pay 40% x 10k = £4000 so net profit after tax is £6k
With fixing windows, their net income is 10k - 3k = 7k. They pay 40% tax x 7k = £2800 leaving a net profit of £7k - £2.8k = £4.2k