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Post Info TOPIC: Help on rental property please


Veteran Member

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Posts: 34
Date:
Help on rental property please


Hi all, I am currently still studying but have been asked for some advice and said i would try and find out.

My friends are both employed and pay tax through PAYE, they have recently bought a property on a buy to let in joint names. They purchased it in November 2013 and put 25% down. They have made mortgage payments since then.

They rented it out in February 2014 and have received monthly rent income since.

The questions they have asked are:

Do they both need to register with the HMRC?

Does a tax return need submitting for 2013/2014?

Are decorating costs etc classed as expenses (they asked about solicitors fees but i knew it was capital costs..... the only answer i could give no )

Any help at all would be much appreciated

 

Clare

 



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Expert

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Posts: 2021
Date:

Hi Claire

Yes they need to register to complete 2014 tax returns.

The solicitor fees involved with the purchase of the property will be relieved when they sell the property.

Decorating expenses is a bit more tricky. Try this link:

www.hmrc.gov.uk/manuals/pimmanual/pim2020.htm

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Expert

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Posts: 1963
Date:

Any money spent prior to letting the property to get it to a state where it could be let would not be allowable unfortunately.

__________________
Rob
www.accounts-solutions.com


Expert

Status: Offline
Posts: 2021
Date:

Even it was let-able as it was, Rob? I know I've heard its wise to move in and then do redecorating... I didn't think a bit of wallpaper and paint would have to be capitalised

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