Capital gains tax

macman

You can claim improvements, not straight replacements. So replacing an old boiler would not be allowable. Installing double glazing to replace single glazing would be.
But I'd get your income tax sorted first...

michno8

Thankyou for all your advice . I did believe I did not need to do anything regarding filing self assessment forms . I hadn't made any profit from renting out due to just charging what the mortgage was as I rented it out to my daughter . 

housebuyer143

michno8 said:

Thankyou for all your advice . I did believe I did not need to do anything regarding filing self assessment forms . I hadn't made any profit from renting out due to just charging what the mortgage was as I rented it out to my daughter . 

You must do self assessment.. If you work a job then the rental income could be taxable and even if it's not, you are legally required to do one. 
As others have said, sort that out first as it raise flags when you submit your CGT form.

MEM62

michno8 said:

I did believe I did not need to do anything regarding filing self assessment forms . I hadn't made any profit from renting out due to just charging what the mortgage was as I rented it out to my daughter . 

Your assumption is incorrect.  You pay tax on the income less any allowable expenses.  With respect to the mortgage element, tax relief is only granted against the interest and only at 20% - even if you are a 40% taxpayer.   

Mutton_Geoff

michno8 said:

Thankyou for all your advice . I did believe I did not need to do anything regarding filing self assessment forms . I hadn't made any profit from renting out due to just charging what the mortgage was as I rented it out to my daughter . 

Was this a repayment mortgage? In which case you were making a profit as your daughter was paying to reduce the capital on your outstanding loan. It's good that you are facing up to this now and get (excuse the pun) get your house in order.

theartfullodger

Were all these improvements done with invoices, receipts etc?? Or (nothing necessarily unlawful about this...) was it for cash no receipt?? 

sheramber

You would be better posting on the cutting tax forum.

Some work can be claimed against rental income, some can be claimed  against CGT. 

You need to separate the work into maintenance or improvements.

The £1000 property allowance only came in  April 2017

You need to report and pay your capital gain tax within 60 days of the sale but you also need to complete a self assessment tax return  to include all your income, including any capital gain.

michno8

God I'm in a right mess aren't I.  No it was an interest only mortgage . Due to chronic ill health I had to retire from work so get contribution based benefits only . I don't even know where to start . 

diystarter7

macman said:

You can claim improvements, not straight replacements. So replacing an old boiler would not be allowable. Installing double glazing to replace single glazing would be.
But I'd get your income tax sorted first...

Highlighted bit - even if it could not be repaired ie beyond repairs, surely not?  EG, boilers goes bang and you replace it with like for like or simlar surely you can claim?
Thanks in advance,

Mutton_Geoff

michno8 said:

God I'm in a right mess aren't I.  No it was an interest only mortgage . Due to chronic ill health I had to retire from work so get contribution based benefits only . I don't even know where to start . 

Not at all. The biggest step is asking for help then recognising what needs to be done. Start going through your memory, then bank statements, credit cards etc and build a picture over the period what came in and what went out. No need to remember exact figures but just key dates, income and expenditure. There will be plenty of ??? on your notes in the beginning but gradually it will all take shape and you'll be able to produce profit and loss accounts for your rental.

Then look at what you spent and work out whether it should be offset against rental income or CGT. Take your time and in a few weeks, I'm sure you will be in a much better place than you are now.