Will HMRC let you claim for a property purchase that fell through?
1:38 PM, 26th January 2017, 9 years ago
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Can anyone please advise me on an HMRC issue? We were buying our first Buy to Let property at the beginning of 2016 which fell through on 26/3/16.
Our accountants are telling us that HMRC will not allow us to claim the costs associated with the failed purchase, which has cost us thousands of pounds.
Can anyone confirm if this is the case, or advise me where I can direct our accountants to show them that it is claimable? Any help would be greatly appreciated.
Thank you,
Heather.
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Member Since July 2014 - Comments: 150
11:32 AM, 27th January 2017, About 9 years ago
Yes you can claim, its a legitimate cost of running your business…..Put it on the spread sheet under “professional fee’s” then yet a new accountant!
Member Since December 2015 - Comments: 828
11:50 AM, 27th January 2017, About 9 years ago
Reply to the comment left by “John Maynard” at “27/01/2017 – 11:32“:
what business? they appear not to have one?
Member Since July 2014 - Comments: 13
12:45 PM, 27th January 2017, About 9 years ago
Can you not carry forward losses related to rental properties and set off against future rental profits?
Member Since July 2014 - Comments: 150
1:38 PM, 27th January 2017, About 9 years ago
Reply to the comment left by “terry sullivan” at “27/01/2017 – 11:50“:
Hi Terry, I use the phrase business loosely! But if they’re filing a tax return then as a sole trader (or Ltd Co.) its still a legitimate cost of doing that business or trading or creating a profit or however the income is labeled, but i would file it, and have done so myself in the past with no protests from my accountant (FCCA)?
Member Since July 2013 - Comments: 1434
9:08 PM, 27th January 2017, About 9 years ago
A lettings business does not start until the first rent is due.
No costs can be offset until then.
Lettings costs can only be offset against lettings income.
When the lettings business starts, costs associated with setting up the business (within 7 years) go onto the books on that day.
If it would be allowable once the business is operational, then it can be claimed.
see PIM 2505
Member Since January 2011 - Comments: 12193 - Articles: 1396
9:22 PM, 27th January 2017, About 9 years ago
Reply to the comment left by “Michael Barnes” at “27/01/2017 – 21:08“:
Thank you Michael
.
Member Since January 2017 - Comments: 5
11:15 AM, 28th January 2017, About 9 years ago
Totally agree with Michael Barnes.
As an accountant and property investor I think his wording was excellent.
Member Since January 2011 - Comments: 12193 - Articles: 1396
11:23 AM, 28th January 2017, About 9 years ago
Reply to the comment left by “Mark Connelly” at “28/01/2017 – 11:15“:
Thank you Mark
.
Member Since July 2015 - Comments: 344
9:24 AM, 29th January 2017, About 9 years ago
Reply to the comment left by “Michael Barnes” at “27/01/2017 – 21:08“:
Thank you. Useful link – have learnt something new.
Member Since March 2016 - Comments: 163 - Articles: 1
3:20 PM, 30th January 2017, About 9 years ago
Thank you all for being so helpful and forthcoming with information and opinions. It’s really appreciated. Heather.