New Posts For Thread: Renting out a property and taxhttps://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-taxeg a property is rented out for £6000 during a tax year.Sofa, bed and other furniture is purchased at start of tenancy for £2000.Net taxable rental income = £4,000 (ignoring other expenses for simplicity).The owner decides to move in to the propeHMRC is kaput !Greece all over again !https://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552584095#552584095HMRC is kaput !Greece all over again !Mon, 14 Aug 2017 07:23:08 -0500Around half of the 27,000 landlords in Newham are not declaring their rental income. .https://www.theguardian.com/business/2017/aug/13/half-of-landlords-in-one-london-borough-fail-to-declare-rental-incomehttps://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552583957#552583957Around half of the 27,000 landlords in Newham are not declaring their rental income. .https://www.theguardian.com/business/2017/aug/13/half-of-landlords-in-one-london-borough-fail-to-declare-rental-incomeMon, 14 Aug 2017 06:58:47 -0500LFC - CGT is payable on any gains made on the sale of a property other than your primary residence (I think)https://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552520227#552520227LFC - CGT is payable on any gains made on the sale of a property other than your primary residence (I think)Mon, 07 Aug 2017 08:13:06 -0500if you sell a property no one checks if it has been let.https://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552520115#552520115if you sell a property no one checks if it has been let.Mon, 07 Aug 2017 07:54:54 -0500The "wear and tear" allowance changed in April 2016 so prior to that date you could claim 10% of cost of furniture if the property was let fully furnished.https://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552520113#552520113The "wear and tear" allowance changed in April 2016 so prior to that date you could claim 10% of cost of furniture if the property was let fully furnished.Mon, 07 Aug 2017 07:54:22 -0500JH - like this:Purchase price of property: £150kPurchase price of furniture: £2kSale of property: £162kLess purchase price of propert and furniture £152kTaxable CGT amount = £10k (ignoring allowances etc)So you could still claim the entire £2khttps://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552520083#552520083JH - like this:Purchase price of property: £150kPurchase price of furniture: £2kSale of property: £162kLess purchase price of propert and furniture £152kTaxable CGT amount = £10k (ignoring allowances etc)So you could still claim the entire £2kMon, 07 Aug 2017 07:49:45 -0500They would not be allowed as they would be capital expenditure.Can be included in cost of acquisition for CGT purposes.https://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552520011#552520011They would not be allowed as they would be capital expenditure.Can be included in cost of acquisition for CGT purposes.Mon, 07 Aug 2017 07:38:44 -0500Posted before I saw your reply, MM.I'll have to do some research into this. Seems like a bit of a loophole to me.Maybe you can't charge the full cost of furniture to expenses in the first place. If you can, in a scenario like the one in my OP, you'rehttps://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552519835#552519835Posted before I saw your reply, MM.I'll have to do some research into this. Seems like a bit of a loophole to me.Maybe you can't charge the full cost of furniture to expenses in the first place. If you can, in a scenario like the one in my OP, you'reMon, 07 Aug 2017 06:56:03 -0500I guess the correct way to do it would be to apportion the costs over the expected life of the furniture. Eg you could claim only £200 of expenses (furniture expected to last for 10 years) in any single year.Do HMRC expect this level of detail fromhttps://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552519681#552519681I guess the correct way to do it would be to apportion the costs over the expected life of the furniture. Eg you could claim only £200 of expenses (furniture expected to last for 10 years) in any single year.Do HMRC expect this level of detail fromMon, 07 Aug 2017 06:22:35 -0500Nohttps://community.betfair.com/chit_chat/go/thread/view/94038/30914953/renting-out-a-property-and-tax?post_id=552519679#552519679NoMon, 07 Aug 2017 06:22:22 -0500