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just aquired some commercial property which I have no mortgage on.
how will the income from rent be taxed? will this affect my taxation on the wages from my day job?
also is there anyway that my property mortgage can be used to offset any tax ?
how will the income from rent be taxed? will this affect my taxation on the wages from my day job?
also is there anyway that my property mortgage can be used to offset any tax ?
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You will need to fill out a self assessment form for the property business and any other income.
You will be allowed to offset expenditure against income, wholly attributable to the property. So legitimate claimable expenditure would be, for example: - Agents fees to let the property, maintainance, legal fees (but they're are vagaries with new leases), insurance (though that is normally recovered from the tennant), cost of serving section 25 notices on renewal of lease, cost of the compulsery energy efficiency survey, asbestos survey, the business rates on voids et al.
The costs you have incured in acquiring the property would be unlikely to qualify as expenses.
There is a dividing line between capital expenditure and maintainance which you need to understand. If you built an extension to the property that would be a capital expenditure, which no longer qualify for any reliefs. Though if the property is in a qualifying area there may be some grants available. If you ripped out the heating system and put a new one, you would normally be able to offset the cost against the rental income.
As an aside what on earth possessed you to get involved in commercial property. The sectors as dead as a dodo, the expenses are horrific, pressure on rents is ever downward and 'good' tennants as rare as hen's teeth.
You will be allowed to offset expenditure against income, wholly attributable to the property. So legitimate claimable expenditure would be, for example: - Agents fees to let the property, maintainance, legal fees (but they're are vagaries with new leases), insurance (though that is normally recovered from the tennant), cost of serving section 25 notices on renewal of lease, cost of the compulsery energy efficiency survey, asbestos survey, the business rates on voids et al.
The costs you have incured in acquiring the property would be unlikely to qualify as expenses.
There is a dividing line between capital expenditure and maintainance which you need to understand. If you built an extension to the property that would be a capital expenditure, which no longer qualify for any reliefs. Though if the property is in a qualifying area there may be some grants available. If you ripped out the heating system and put a new one, you would normally be able to offset the cost against the rental income.
As an aside what on earth possessed you to get involved in commercial property. The sectors as dead as a dodo, the expenses are horrific, pressure on rents is ever downward and 'good' tennants as rare as hen's teeth.
family owned property passed down to me and sister.
2 are long term established, one is just being bought as it is next door to 2 of the others, buying for land rather than the business, but it comes with rent from tenant.
the 4th is empty at the min but my plan is to convert back to residential and sell off.
thanks for the help.
2 are long term established, one is just being bought as it is next door to 2 of the others, buying for land rather than the business, but it comes with rent from tenant.
the 4th is empty at the min but my plan is to convert back to residential and sell off.
thanks for the help.
BE GOOD LOL.
SINCE GOT THESE PROPERTIES INCOME HAS GONE UP, NEED TO FIND A GOOD INVESTMENT FOR IT ALL.
SINCE GOT THESE PROPERTIES INCOME HAS GONE UP, NEED TO FIND A GOOD INVESTMENT FOR IT ALL.
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