asteff34 Posted January 16, 2017 Report Share Posted January 16, 2017 I remortgaged my flat to put a deposit down on my house and now rent my flat out, I was told by my the Estate Agent that I would not have to declare the rent as it off-set my mortgage on the new house. Is this correct or should it be declared to HMIC? Link to comment Share on other sites More sharing options...
Richlist Posted January 16, 2017 Report Share Posted January 16, 2017 Thats completely incorrect ! My advice is never rely on tax advice from an estate agent. The rules are as follows......you can offset loan interest payments up to the price of the flat at the point it entered your rental business. So, for example, you buy a flat for £100k with a £70k mortgage, you let the flat and offset the interest on the £70k against tax. Two years later it's worth £150k so you remortgage for £120k. You cannot offset the interest for £120k but only the interest for £100k which was the original purchase price. Link to comment Share on other sites More sharing options...
Melboy Posted January 17, 2017 Report Share Posted January 17, 2017 12 hours ago, asteff34 said: I remortgaged my flat to put a deposit down on my house and now rent my flat out, I was told by my the Estate Agent that I would not have to declare the rent as it off-set my mortgage on the new house. Is this correct or should it be declared to HMIC? Your EA doesn't have a clue does he/she. Totally incorrect information being given to you. If you are renting out a flat and receiving income from that flat then it must be declared to HMRC and the necessary paperwork completed by you. Link to comment Share on other sites More sharing options...
Grampa Posted January 17, 2017 Report Share Posted January 17, 2017 14 hours ago, Richlist said: Thats completely incorrect ! My advice is never rely on tax advice from an estate agent. NEVER TRUST AN ESTATE AGENT Link to comment Share on other sites More sharing options...
Richlist Posted January 17, 2017 Report Share Posted January 17, 2017 I did think about posting that comment myself but decided that it might only be appropriate coming from somebody in the business. ? Link to comment Share on other sites More sharing options...
Grampa Posted January 17, 2017 Report Share Posted January 17, 2017 I more like to think of myself as a proprietor of an Estate Agency not actuary an Estate Agent. Link to comment Share on other sites More sharing options...
fionaf Posted January 18, 2017 Report Share Posted January 18, 2017 Even HMRC will 'try it on' too and give incorrect information. We ended up getting an accountant who for the sake of £150 saved us £5k - that was what HMRC said we owed but we and the accountant knew better. Link to comment Share on other sites More sharing options...
Melboy Posted April 9, 2017 Report Share Posted April 9, 2017 Good a place as any to ask this question................ I have just paid out to have a fencing replaced to the rear and side of one of my rental properties which was brought down in strong winds. Q. It this tax a deductable expense in the current tax year? or not. Can you claim for this? Like most insurance policies fences are not covered or at least mine wasn't Never had any reason to make this type of claim before. Link to comment Share on other sites More sharing options...
Richlist Posted April 9, 2017 Report Share Posted April 9, 2017 Yes you can claim it as an allowable expense. There are no changes to the rules regarding repairs and maintenance of rental property in the current tax year 2017/18 as far as I am aware. Link to comment Share on other sites More sharing options...
Melboy Posted April 10, 2017 Report Share Posted April 10, 2017 Thanks RL. I thought it might be allowable. For any other landlord with fencing problems I can tell you the price of fencing materials has shot up in price in the past 2 years but I managed to get a trade discount through a friend of mine who had a trade account. Link to comment Share on other sites More sharing options...
Melboy Posted April 16, 2017 Report Share Posted April 16, 2017 Here is another question................... Same property Having completed the fencing which I have to say looks superb. Pictures? my tenant has requested that the top garden wood decking be replaced as it is rotten and breaking up. Would this replacement decking be a tax deductable item for FY 2017/18 ? Link to comment Share on other sites More sharing options...
Richlist Posted April 16, 2017 Report Share Posted April 16, 2017 Yes you can claim the cost of the replacement decking to reduce your income tax. These answers for fencing & decking.... assume that we are talking about like for like replacements with no improvements or additions. If there were improvements or additions the cost would be classed as a capital expense and could only be claimed against capital gains when the property is sold. Link to comment Share on other sites More sharing options...
Melboy Posted April 17, 2017 Report Share Posted April 17, 2017 All existing RL. I have taken photo's of before and after of the fence & decking as a record of work done in case HMRC should ever challenge me when submitting my tax return. My tenant is one of those rare breeds. He is fully employed carpenter who also had a his own fencing business a few years ago. He has carried out all the work free of any charge with me paying for the materials. He is going to re-turf the lawn next. It just keeps getting better and better and I can see COR drooling right now at thought of a tenant who actually wants to improve his property that his family lives in. Link to comment Share on other sites More sharing options...
Richlist Posted April 18, 2017 Report Share Posted April 18, 2017 You're a very lucky boy, those kinds of tenants are very rare. In your shoes I'd try to run up a list of actions that would help to retain him. I do this for my selected tenants that I am very keen to keep. These are the sorts of things that I have done in the past : * Provide a small discount on market rents. * Refund part of their deposit. * Offer free services such as grass cutting or garden maintenance. * Give them free use of my holiday home for a couple of weeks a year. I try to offer them things that they won't get if they move somewhere else and the part refund of the deposit is usually the clincher. If they move they have to pay higher rent, find their deposit all over again and loose a free holiday......so far it's worked. Link to comment Share on other sites More sharing options...
Melboy Posted April 18, 2017 Report Share Posted April 18, 2017 Yes, good tenants like this are rare. I do have another tenant who has been in occupancy for 10 years now and for him I do give him a much lower market rent and I did return 50% of his deposit some years ago. He does get looked after as indeed all my tenant's do. I guess if you analyse it initial selection of your tenant suitability is the most important part of being a landlord to reduce any future problems. Link to comment Share on other sites More sharing options...
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