This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

First Rental (5 Months)

Jimuck
Posts:5
Joined:Thu Sep 26, 2019 8:53 pm
First Rental (5 Months)

Postby Jimuck » Thu Sep 26, 2019 9:08 pm

Hi,

I’m currently doing my first tax return. It’s not been the easiest thing to do as you can imagine.

I’ve made a loss on a rented property. The question I can’t seem to find a good answer to:

Are these things deductible for the first lease? I’ve put my best guess in brackets, which lines up with guidance.
* Landlord registration (y)
* Gas and Boiler check (y)
* Fees for setting up a lease (?)
* Key cutting for tenants and estate agent (y)
* Credit checks for tenants (y)
* Electrical check (y)
* Remedial to make safe (new RCD and new style smokes). (N)
* Check in/out inventory (y)

In the guidance the fees for the lease aren’t deductible for 1st lease over a year. But then I read something else that says if the lease is less than a year it’s deductible.

There’s a new tenants in. So I’ve put his lease as a cost.

I’m stuck with the wording. Any costs for the first letting or subletting if a property for more than a year. Does that mean it’s not been leased for a year prior. Or will he lease for a year. Does it include landlord insurance, registration, checks, credit check as above?

Thanks for any input on this.

J

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: First Rental (5 Months)

Postby jerome.lane » Tue Oct 01, 2019 10:34 am

Hi, I would suggest all of the costs are allowable but it depends on the length of the first let. How long is agreement for?
Jerome Lane
Tax Adviser
Telephone: 07943 005902

Jimuck
Posts:5
Joined:Thu Sep 26, 2019 8:53 pm

Re: First Rental (5 Months)

Postby Jimuck » Wed Oct 02, 2019 12:46 pm

Hi, I would suggest all of the costs are allowable but it depends on the length of the first let. How long is agreement for?
The first let was open ended let instead of the old short assured tenancy. The tenant left on their own accord after 5 months. The following let is the same, but he has been renting since February this year.

Since first let was less than a year, I feel it should be all costs. If the first tennant had stayed more than a year the legal fees could have been removed from cash costs.

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: First Rental (5 Months)

Postby jerome.lane » Thu Oct 03, 2019 3:12 pm

Agreed - all allowable! ;)
Jerome Lane
Tax Adviser
Telephone: 07943 005902

Jimuck
Posts:5
Joined:Thu Sep 26, 2019 8:53 pm

Re: First Rental (5 Months)

Postby Jimuck » Sat Oct 05, 2019 3:55 pm

Agreed - all allowable! ;)
Thanks. It’s enough to pass the red face test in my book anyway....


Return to “Property Taxation”