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Melboy

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About Melboy

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  • Location
    Wiltshire
  • Interests
    Aviation. Private Letting Landlord in Semi-Retirement and a retired small-time Property Developer.

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  1. I am putting this information up on the forum as there may well be many new and experienced landlords who are not aware of this new'ish HMRC tax break that came into force a year or so ago. Now I know most of us regular contributers to this forum have an accountant to deal with their property investments etc. but even I got caught out because my accountant was not aware that one of my properties was held in joint names with my business wife so therefore I could claim for her £1,000 HMRC tax allowance as well as for me. So for all you landlords with say just the one property and have an expense/repairs claim that comes in at under £1,000 pa you can claim this £1,000 property tax relief..........and if held in joint names £2,000. You cannot claim this relief for each and multi owned properties you have......but just the once off. Here it is in full for you all to have a read. Property owners who receive an income from rent could be missing out on a recently introduced tax-free allowance potentially worth hundreds of pounds provided they have low rental income Taxpayers can claim the property income allowance, which came into effect in April last year, giving the property owner £1,000 of tax relief on their rental income, provided they have few or no expenses. The allowance is worth up to £1,000 each tax year in tax-free allowances for property or trading income from 6 April 2017. ‘Depending on circumstances, this can be a fairly generous tax break for individuals who rent out their property, including land owners, for example farmers. A basic rate taxpayer can save up to £200, while higher rate taxpayers can save up to £400 by claiming the allowance,’ said Annalise Lovett FCCA, partner at chartered accountants Newby Castleman. ‘Because many landlords and property owners fill out their own tax returns, they may well have overlooked the property income allowance, especially as it only came into effect last year, and the 2017/18 tax return is the first time it can be claimed.’ The new allowance can be particularly beneficial to joint owners of property and land, for example married couples, as both parties are able to claim the allowance, ie, up to £1,000 each. Where the allowance covers all of an individual’s relevant income (before expenses) then they will no longer have to declare or pay tax on this income. Those with higher amounts of income will have the choice, when calculating their taxable profits, of deducting the allowance from their receipts, instead of deducting the actual allowable expenses. The trading allowance will also apply for Class 4 national insurance contribution purposes. The allowance does not apply to partnership income from carrying on a trade, profession or property business in partnership. They cannot be used in conjunction with the relief available under the rent-a-room relief rules. Lovett said: ‘It’s a relatively straightforward way of claiming back a potentially generous amount from the taxman, and if you’re completing your own tax return it might be easy to miss.’ The relief was introduced as part of Finance Act 2017, and introduced a new Part of Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), to give relief for two new annual tax allowances for individuals of £1,000 each, a trading allowance and a property allowance. HMRC guidance, Tax-free allowances on property and trading income (updated guidance issued 6 April 2018)
  2. It won't happen RL I would concede though that new builds might have to have heat pumps installed as a heating source rather than gas.
  3. I was thinking that as well about the size and output of a gas boiler serving 8 units. I should go and have a look at it Grampa as it probable can power the QE2as well 😊 and would cost a small fortune to replace. Also has it been serviced on a regular basis?
  4. 1. Proof that this property is your main home residence with Council tax and Utility Bills and you are living there in your home full time. If this is not the case then yes, you are stuffed. If it is then these two people are short term lodgers and not renting your 2nd property on an AST and therefore have no protection rights whatsoever. Remove their items, change the locks and get them out. They have no recourse of any legal action against you. As Mortitia has said next time do not be so casual in how you proceed to rent your rooms or property out to total strangers.
  5. Tricky question that is. A SC charge of £1800 is enough to put anyone off buying this flat but to then learn you have little or no control over gas and water charges doesn't help does it.
  6. As always the devil will be in the detail. The time has come for landlords to be protected from rogue tenants who think they can refuse to pay rent and ignore contracts and then go on to damage the property to such an extent of criminal damage and then to have no liability in law to answer for their behaviour. There does need to be an ultra fast process to evicts such tenants, not forgetting that the private landlord is not a branch of the social services housing disruptive tenants for months on end whilst they, the tenant, hide behind outdated tenancy laws.
  7. Well, there you go then. Totally beyond anyone's expectations I would say but not a surprise really when you consider what the opposition had to offer. If you are a Lib. Dem. supporter look away now and cover your ears. 😀 Jo Swinson was a terrible choice imo. Whoever was guiding her got it very wrong indeed. Some of the statements she was coming out with were just not real or possible......like.....I'm going to be your new Prime Minister. I don't think so. I'm all all for a positive attitude but this was just not achievable by her purely by the nature of voting statistics. She was punished at the voting booth and lost her seat so by Lib Dems party rules had to stand down immediately. No doubt she will join her husband in some EU quango where he currently is. Comrade Corbyn.........What can you say? The Man was unfit for high office for many many reasons and the voting British public have told him so.
  8. 😃 Keep trying RL My constituancy will be returning a Tory MP. Always does and always will. Very strong majority with a long serving MP who is a firm Brexiteer and a very good solid MP but of course as we all know it is the 40 odd seats in the marginals that decide the outcome of any general election. Oh! Well! not long to go now and I have much more important thing to consider like my tax return before January 31st which is fast approaching.
  9. I'm not intending to sell anything soon. In fact I may even buy again next year because if Labour do become the Government the value of paper folding money you are holding in your savings /bank account will dissolve quicker that snow in Summer. For those of us who are old enough and remember the early to late 1970's will remember the rampant inflation that crippled everybody. The famous slogan at that time was "One person's pay rise...... is another person's misery" How true that was. Down here in the South West we have early indications of the future under a possible Labour government with the South West train drivers on a 27 day strike. Beggars belief doesn't it.
  10. Easy question for me to answer at anytime: 1. None that I am aware of. Now of course there will have to be a cost in providing this answer won't there? This is the usual pattern of securing more revenue for the Treasury off the property buyer/seller or landlord.
  11. Oh! Yes! It is absolutely essential to follow the guidelines of thoroughly referencing any prospective tenant. I am amazed that after all the publicity on TV shows about bad tenants newby landlords still fail to carry out the basic of checks on their future tenants and then they wonder why they are thousands of pounds out of of pocket when things go sour. I have to admit even an old dog like me is still learning and in recent years I follow Richlists comprehensive format when selecting any new tenant.
  12. I think I paid around £10 for tenant referencing on my last tenant which was 18 months ago. I was happy to pay this as for me as it is built into the rental charge and is also a tax deductible expense. A small sum to pay for some peace of mind imo and more to the point it works for me. I also pay the £20 (or so) to protect the deposit with the DPS and I keep the tenants deposit money in a totally separate account.
  13. I would have said it was tax free.
  14. I'm praying Richlist. It is unbelievable listening to Labour Party election manifesto yesterday. It is just not economically possible to do what they are proposing to do. Where do they think the Companies will get the money from to pay these huge tax rises? By raising prices of course ! Then everyone will be affected. Hello 1975 because for four long Labour Government years this is what happened then and it near bankrupted the Country.
  15. I thought I would put this news article up on the forum. Personally I am not surprised reading this news as this Tory government under Chancellor George Osborne has done his best to ensure that landlords face unwarranted and unecessary financial pressures that would lead to the outcome you are seeing today. Mind you I don't particularly think that the figures are that high to warrant outright panic because there can be many reasons why landlords sell up and move on. It won't affect me I have to say. Soldier on..... and I will have a £10 bet with anyone that Labour will not be in Government on December 13th. ( may I never have to eat those words. 😋 ) https://www.thisismoney.co.uk/money/buytolet/article-7697243/Buy-let-repossessions-nearly-DOUBLE-just-one-year-official-figures-reveal.html
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