GinaR Posted November 20, 2013 Report Share Posted November 20, 2013 Hi. I am about to register for self assessment (I know now that I'm late) but I want to ask if the date my circumstances changed should be the date I started the refurb or the date tenants moved in. Any advice would be very welcome. Thanks Link to comment Share on other sites More sharing options...
Carryon Regardless Posted November 20, 2013 Report Share Posted November 20, 2013 The date you bought the property (or it became your possession). Later down the road this is relevant to any capital gains liability. Link to comment Share on other sites More sharing options...
Richlist Posted November 20, 2013 Report Share Posted November 20, 2013 The date you bought the property (or it became your possession). Later down the road this is relevant to any capital gains liability. Well I'm not so sure thats correct. The Op is talking about self assessment .....which would ordinarily includes both CGT & IT but as CGT is some way in the future ( after a future disposal of the property), I think we should just concentrate on the income tax element at the moment. Its a complex subject. If you bought the property and it needed refurbishment before letting then the costs are generally considered to be capital expenditure and can only be offset against future CGT. Once the property is let then expenses can generally be offset against income tax liability. The property only enters your lettings business when its first let not when its purchased. If you want to provide more detail we can provide a better answer. Link to comment Share on other sites More sharing options...
Carryon Regardless Posted November 20, 2013 Report Share Posted November 20, 2013 True enough RL, I thought this was Relph4444 continuing from his thread of a few weeks ago, oops. So here we don't know, yet, if the property was bought to let or is changing status from a previous other use. My thoughts are still that if the property is bought to let then that is when the letting business commences, the records of capital expenditure being kept for the later, at disposal, calculation. A, future, LL is carrying out renovation as a business and so the circumstances have changed. Link to comment Share on other sites More sharing options...
GinaR Posted November 21, 2013 Author Report Share Posted November 21, 2013 Thanks for the replies. To give a bit more info, the property was formerly my main residence for 20yrs, I have purchased another property and started to rent out the previous one. Before doing so, I did some refurb work on it. If I register from the date the tenants move in, would that then not allow me to claim for the works done? Link to comment Share on other sites More sharing options...
Richlist Posted November 22, 2013 Report Share Posted November 22, 2013 What refurb work was done prior to letting ? Link to comment Share on other sites More sharing options...
GinaR Posted November 23, 2013 Author Report Share Posted November 23, 2013 New kitchen and bathroom. Carpets and appliances. Link to comment Share on other sites More sharing options...
Richlist Posted November 23, 2013 Report Share Posted November 23, 2013 Then in your particular circumstances a new kitchen & bathroom would be a capital expense and only allowable against future CGT. Carpets & free standing appliances would not be an allowable expense for either income tax or cgt. However, there are some expenses incurred prior to letting that you can claim eg your gas safety certificate, electrical safety certificate, EPC certificate etc. Best get yourself an accountant to sort things out for you the first year. Link to comment Share on other sites More sharing options...
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