Michael Barnes

Registered with Property118.com
Wednesday 10th July 2013

Latest Comments

Total Number of Property118 Comments: 1413

Michael Barnes

22:52 PM, 11th February 2021
About 2 months ago

Are old expense receipts still valid?

does anyone have any advice as to the best way of documenting the cost incurred for improvements over the years so as to correctly claim against CGT and also be ready should the tax man want evidence (does this ever happen?)

You should maintain financial records for your business, preferably double-entry book-keeping.

When you incur an expense it should go into the appropriate account, eg "Revenue Expenses", "[Property X] Capital Improvements". It is then easy to determine the amount spent on capital items when you come to sell.

Each receipt/invoice should have a unique identifier allocated by you, and that reference should annotate the entry in your books. (I use identifiers of the form "YY/n" where "YY" is the last 2 digits of the year the tax year ends in, and "n" is a sequential number starting at 1 for each FY. I then file each receipt/invoice in numerical order)... Read More

Michael Barnes

18:43 PM, 11th January 2021
About 3 months ago

Tax rebate for eviction legal fees?

Reply to the comment left by NewYorkie at 04/01/2021 - 19:45
"not much use if the reason for the eviction is because you haven't had any rental income!"

Any loss can be carried forward.... Read More

Michael Barnes

18:41 PM, 11th January 2021
About 3 months ago

Daughter remaining in property after tenant moves?

Reply to the comment left by Sam Addison at 05/01/2021 - 16:54
" if she has moved out then the tenancy is ending"

That is not the case. The tenancy continues.... Read More

Michael Barnes

18:37 PM, 11th January 2021
About 3 months ago

Council tax and mortgage interest on empty property for over 15 months?

My understanding:

As you already had a lettings business, the costs are allowable for the 2019-20 tax year.

Had these been your first lettings, then they would have been claimable on your 2020-21 tax return; in this case they should have been put into the accounts dated the day the first property was let.

And don't forget that only a proportion of the interest (and arrangement fees) can be deducted directly; the rest go in a different box in the tax return.... Read More

Michael Barnes

18:16 PM, 11th January 2021
About 3 months ago

Mould is a landlord problem claim tenants and councils agree by issuing massive fines

"In the study, 40% of people stated they wouldn’t clean mould themselves if they were in a rented home

And therein lies the problem.

If they tackled it early, then it would not develop.... Read More