PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Expenses from previous tax year for renting out rlst
Options
eddiejones
Posts: 114 Forumite
Hi folks,
I bought a flat early in 2019 but ending up having to move elsewhere before living there.
It needed a new water tank, shower system which I had completed in early April 2019 (April 3), and I started renting it out in May.
Any idea if I can offset that expense against the rental income for the 2019-20 tax year?
Thanks,
Ed
I bought a flat early in 2019 but ending up having to move elsewhere before living there.
It needed a new water tank, shower system which I had completed in early April 2019 (April 3), and I started renting it out in May.
Any idea if I can offset that expense against the rental income for the 2019-20 tax year?
Thanks,
Ed
0
Comments
-
So these were expenses you incurred before renting the property?in S 38 T 2 F 50
out S 36 T 9 F 24 FF 4
2017-32 2018 -33 2019 -21 2020 -5 2021 -4 20220 -
A rental had been agreed, and it discovered that the shower didn't work.
I guess from your question that in principle yes, I can ��.0 -
Actually I would say potentially you cant claim it as an expense as you were not renting at the time,but if you wish to claim that rental was underway that's your call.in S 38 T 2 F 50
out S 36 T 9 F 24 FF 4
2017-32 2018 -33 2019 -21 2020 -5 2021 -4 20220 -
Ok, so in theory offsetting expenses over tax years is OK? That's all I was asking really.0
-
I guess https://www.investorschronicle.co.uk/pf-matters/2017/11/30/the-buy-to-let-expenses-minefield/ explains it OK. Agree it's a bit murky.0
-
then you need to do more reading since the property was intended to be your main home and is now your main home therefore such costs cannot be offset against rental income in full as only part of the cost relates to the business use period as the cost is not wholly and exclusively business relatededdiejones wrote: »Ok, so in theory offsetting expenses over tax years is OK? That's all I was asking really.0 -
Right. It's not my main home, and won't be again. It was bought initially with that idea... Well at least, early on in the buying process.0
-
If there are expenses incurred in getting a property ready for rental they can be offset against income from that property, even over tax years.
Be careful you are not including capital improvements.0 -
OK I misread your opening line where it said "before living there" - so you meant you lived elsewhere instead of "there"eddiejones wrote: »Right. It's not my main home, and won't be again. It was bought initially with that idea... Well at least, early on in the buying process.
pre taxing revenue repair expenses are allowed if incurred in the period 7 years prior to the start of the rental business
if you are not going to use an accountant to make sure you get the capital and revenue costs split correct then you need to do a vast amount of reading if you intend to DIY your tax return
Here is the manual
https://www.gov.uk/hmrc-internal-manuals/property-income-manual
here are the commencement rules
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505
spend a lot of time learning what is, and is not, a tax deductible "repair" and then learn what is a tax deductible non repair expense (crucially interest, if applic )
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim20200
This discussion has been closed.
Categories
- All Categories
- 343.4K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.8K Spending & Discounts
- 235.5K Work, Benefits & Business
- 608.4K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards