Accountants in the house - Property related

Bald-Eagle22 · 30 Apr 2014 at 13:32

Guys , your all going in the wrong direction with this , the losses will carry over and and I will be able to offset against any future profits when I start to make them .

I can only claim against

Mortgage interest
Ground rent
Management fees
Repairs .

The losses will carry over - I know this for fact .

My question is what will the Inland revenue do if I submitt 7 years worth of returns that all show a loss ?

Mark M · 30 Apr 2014 at 13:35

You would apportion the time the property was owned and apportion the gain based on the time he lived there. By living there one year there would still be CGT to pay, its a massive misconception that you can move in for a short period and avoid paying CGT on it when you sell it.

LOAM · 30 Apr 2014 at 13:35

Fine you for late filing.

Mark M · 30 Apr 2014 at 13:37

Bald-Eagle22 said:
Guys , your all going in the wrong direction with this , the losses will carry over and and I will be able to offset against any future profits when I start to make them .

I can only claim against

Mortgage interest
Ground rent
Management fees
Repairs .

The losses will carry over - I know this for fact .

My question is what will the Inland revenue do if I submitt 7 years worth of returns that all show a loss ?

If you have a decent accountant and sometimes a friendly HMRC officer you will get away with a couple of hundred quid fine for the last few years.

Kemik · 30 Apr 2014 at 14:05

Mark M said:
You cant offset rental losses against other income so he wont get any tax back. The losses have to be carried forward.

Poop. Knew I should have checked the loss allocation rules for rental income before posting. Been in Corporate for too long!

amkan13 · 30 Apr 2014 at 14:09

this might help too
https://www.gov.uk/let-property-campaign

ivrytwr3 · 30 Apr 2014 at 14:13

http://www.tesciuba.com/

[email protected]

This guy is the uncle or something of Martin Lewis of MSE fame. He used to do my SA Tax returns when i had rental property. I never paid any tax, but like you was running my property at a loss.

Might be worth asking him the question and he will also complete the forms for you (for a fee of course).

mattyg · 30 Apr 2014 at 17:26

Mark M said:
You would apportion the time the property was owned and apportion the gain based on the time he lived there. By living there one year there would still be CGT to pay, its a massive misconception that you can move in for a short period and avoid paying CGT on it when you sell it.

Sorry meant Private residence relief