10:16 AM, 17th May 2014, About 8 years ago 7
I’ve recently been reading the HMRC toolkit about rental tax which I found very clear and informative, until however, I called the HMRC and they corrected my thinking! The confusion is over this statement:
“Expenditure incurred prior to the commencement of a rental business is allowable if it is wholly and exclusively for the purposes of the rental business and is not a capital expenditure”
You can also claim up to 7 years of expenses prior to the start of the rental business.
I assumed this would mean property sourcing costs such as attending viewing’s and estate agents at 45p a mile, Mobile phone costs etc. I was informed it was only costs AFTER acquiring the property.
But surely that flies in the face of the statement “Prior to the commencement of a rental business” as once you’ve bought the property the business has commenced
Any thoughts would be appreciated!
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|