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Posted Tue, 02 May 2023 16:00:07 GMT by AlexF F
We have used a part of our residential property as a holiday let over the past year. However the expenses in getting the let off the ground ( putting heating, kitchen, shower etc in ) far exceeded any income received. Your self assessment check sheet says that we don’t have to submit a self assessment t form if we earned less than £2500, after expenses. Would the capital expenses mentioned mean that we don’t have to submit a self assessment form?
Posted Wed, 10 May 2023 09:55:24 GMT by HMRC Admin 5

Capital expenses cannot be used against rental income as this will be deducted when (if) you sell the property.

As such, the heating,kitchen, shower you refer to are not allowable expenses. You will therefore need to check your level of profit again.

Also, if the actual gross rental income is over £10,000, irrespective of any profit, a tax return will  be required.

Thank you.

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