Richlist

Just imagine a World where the sun is always shining. A place where when you let your property you have no expense allowances. You cannot offset your mortgage costs, repairs, maintenance, insurance, agent fees or any other expenses. An Eldorado where your whole rental income is subject to income tax......and you have to submit a tax return every 3 months. Where is this World ?......... In Spain ......if you are a non resident home owner who let's out property. Of course it does mean you don't need any receipts so you can get anything & everything done incredibly cheaply just by paying cash ! 😇😇

Wales has rarely been landlord friendly. Even more unfriendly if you're a landlord who doesn't live in Wales. In recent years the changes and legislation has made any second home owner in Wales an enemy of the state. England are having a similar go. Many of the changes over the last few years (mostly by the Tory Gov') have resulted in large numbers leaving the sector. Then, this week, I read that suddenly there is an even larger shortage of rental property than ever before.......surprise, surprise. I'm sitting on a very large cash pile having sold a few properties. With high inflation eating into it and talk of it hitting 10% part of me says buy more property. The other part of me asks .....are you sure you want to, given the adverse legislation that pervades the industry ? The answer is that there aren't very many places anyone can put their money and get a better return.

I have found myself in similar situations a few times. I always try to negotiate an amicable arrangement that provides me with access, viewings, opportunity to limit void periods in exchange for flexibility in rent and tenant notice requirements. Unfortunately for you......you're in Wales and probably have to jump thru hoops whilst still guaranteed to loose financially. There is no easy answer but meeting each other half way goes some way to smoothing out the bumps.

* A copy of a photograph is easily obtained......so looks like I'm ok. * I guess your epc assessor doesn't check the central heating, wall stat or controls are working either but places a tick in the box if he sees all that stuff fitted to the wall. All he needs to see are appliances attached to timer controls.......I could even show him where they are and open the cupboard doors for him if it would help.

Yes, if a finished house has insulation pumped into the cavities you will get a certificate but......not in 1989 when you build a property yourself and the cavity wall batts are fitted as the brick & blockwork goes up. We had specifications, drawings, a surveyor, a main builder for the structural stuff, NHBC certification and a file over 4 inches thick of documents relating to banking, taxation & construction. Oh.....and I was consciencious enough to take lots of photos as it went up. That's all they will get.

* I'm guessing/hoping that a photo showing cavity wall insulation being installed during construction will provide sufficient evidence ? May I make a few additions to Grandpa's list....I have no idea wether they will factor EPC improvements but they should. * Reflective foil behind all radiators on external walls. * Draw curtains with linings. * Baloon fitted to seal off unused chimneys. * High current draw appliances set to run on low rate timers.

Beginners luck ?

Why cant you issue a section 8 notice ?

The short answer is no. Most of us have our own, mine has been developed over 20+ years. HMRC have only questioned my tax return once in all that time.....I sent them my spreadsheet which was accepted. HMRC won't necessarily expect an excel spreadsheet but you should keep records of how your expense claims break down in case they ask for more detail & a spreadsheet is a good way of doing it. There is always the alternative of using an accountant for a couple of hundred pounds.

Ok, I got the impression you had carried out structural work on the garage. Replacing facias & soffits are usually cosmetic changes that, in my mind are in the same group as decoration. I would only have changed them if it suited me and i would have ignored any request from neighbours concerning my property. That's the trouble with some neighbours, they think they have a right to have others jump as soon as they say frog. Id now find at least half a dozen aspects of their property I don't like and complain to them about it........but that's me, I really don't like to be told to do anything. I think provided you had a formal contract with the tenants from Dec 2020 - May 2021 then the garage work, interior decor and like for like boiler sounds like it could be offset against income tax.

The cost of 'like for like' replacements & repairs can generally be offset against revenue ie. income tax. Any improvements eg. a better kitchen, any additions etc can only be offset against capital ie. CGT. If any work involves improvement then the total cost (including any like for like) can only be offset against capital. Repairing the structure of the garage sounds like the property needed work when you bought it. If so, the cost of that work is likely to be a capital expense and would be added to the purchase cost when calculating CGT on disposal. Did the leaking boiler have a gas safety certificate from December 2020 ?

You haven't provided enough information for us to answer that question. What date did you buy ? Has it already been let by you & when ? Did you need to carry out repairs/work before you let it ? Have you carried out any improvement works before, during or after letting ? Tax returns arent easy if you want to do them correctly.

Sounds like the overload has either blown a fuse or tripped the circuit and it might be a very simple fix that will take minutes to fix at virtually no cost. Do you have someone local who can take a look for you ? You asked who is responsible for the repair when I suspect what you mean is who is responsible for the cost of the repair......thats 2 different things. You the landlord would be responsible for the repair......as the landlord must make the property secure and it's not with a door that's jammed open. The tenant would be responsible for reimbursing you the cost to fix it......because they caused the problem.

In my experience the answer is to always manoeuvre yourself into a position of strength/ ensuring that you hold the upper hand. I remember many years ago I asked my employer for a small change to my employment contract. I had given the matter a lot of thought, spent time ensuring the change would result in not just an advantage for me but also that there were benefits for the Company. All the fine details had been carefully planed. I arranged to meet senior people in the organisation, presented my proposal, laid out the advantages and was met by a negative response. I described how dedicated I was to the success of the Company by reminding them that I had chosen to let nearly all of my properties to some of their best engineers. My proposal was approved.

So all you need is a contract. You already have one of those. Find a suitable tenant, get it signed, Job done. I wouldn't bother with anything else contained in your original post.

Yes I agree, you are making it far more complicated than it needs to be. You are taking in a lodger. Lodgers have few rights. So you really only need to concern yourself with : * Does the applicant meet my criteria ? * Set the rent, can they afford it, will they pay on time ? * Will they keep the place clean & tidy ? Nothing else really matters.

You could probably find an island in the Caribbean where Wi-Fi just doesn't work.......that sounds like a very reasonable excuse. PS. I'm one step nearer retirement......as I picked the winner in the Grand National yesterday at 50:1

Oh good. By April 2024 hopefully I'll have retired and be relaxing in the Caribbean on a sun drenched beach, sipping on my gin & tonic and wondering what to spend my money on next !

Only time will tell how this turns out. In Spain, in my particular area it's had the effect of reducing the number of available rental properties as people don't want the effort & expense involved. I think the situation is completely different between professional landlords with 10,20,30 or more properties and those landlords with 1 or 2 properties. There are an enormous number of landlords with just 1 or 2 properties in the UK that may decide it's time to sell up or incorporate. Many of us don't use a lettings agent or an accountant so the transition will likely be difficult.

I sympathise. As I've said many times, I love Wales, would like to live there, it's a great place, has everything I need, but the devolved Gov' have ensured they have discouraged & disincentivised me at every opportunity. Whilst admittedly my wish to buy Welsh property would further restrict local home ownership.....you would have thought that my money, my ability to employ local workers and businesses & to offer good private sector accomodation might tempt them to take a different approach. But alas.....I now see Wales as just a small piece of the UK, with a short sighted, inward looking Labour controlled Government who will attract only tourists.

I remember reading about this sometime over the last year. I think it was a proposal being considered by the Gov' but it hadn't got anywhere near to being passed and as the Gov' have been somewhat busy with other important emergencies it got kicked into the long grass. It wouldn't surprise me if it's been resurrected as they need all the income they can get, as quickly as possible. Out of interest, they already have this system of quarterly tax returns in Spain.....it's hated. Owners of rental property in Spain who are UK residents, are since Brexit, no longer able to offset any expenses and the tax rate is 24%. Makes a UK landlords lot look a lot more attractive eh ?

Flats tend to be leasehold. Often the lease contains restrictions on letting & /or require permission from the freeholder. So there are 3 potential problems......mortgage lender, insurance and freeholder.

With one property to let it's probably easiest to just claim the HMRC approved travel/mileage costs of 45p/mile.....I keep a small notebook to log the date, destination & mileage. At the end of the tax year, total the mileage covered X 45p Most of the other items require very little work/record keeping other than obtaining a receipt for the expense. If you have a Lettings Agent you are going to be limited to what you can claim for as it's expected that your Agent will deal with stuff for you. With an Agent you probably can't claim the use of your home (fixed at a few hundred pounds a year & requiring absolutely no work of any kind). Good luck.

Reasons for a drop in the number of students over the past couple of years :- how about.... * Brexit. * Covid 19.....restrictions, lockdowns etc. * University fees. * Foreign students unable to travel (due to Covid 19). * Perceived poor value for money as lectures cancelled during pandemic. * There were no graduation ceremonies in 2020/21......and may be none this year. Etc etc etc

Theres * Utility costs during voids, car mileage or capital allowances, telephone, ISP, printer cartridges, cleaning materials if you do it between tenancies, stationery, use of home as an office, costs of any permission to let if permission is required by your lease. We have claimed some years for postage, books & publications, bank charges, rent guarantee insurance, photocopying, advertising, consumables, computer software and capital allowances for equipment and even dry cleaning bills in an emergency. It depends on you circumstances as to what is appropriate. I've always viewed tax returns as a means of maximising my income ie the more I can claim for legitimately the less tax I pay.