HMRC Admin 19 Response

Hi,

Sorry, we can only answer HMRC questions on this forum.

Thank you.

Hi,

You can see information here:

Check if you need to send a Self Assessment tax return

Thank you.

Hi,

There is a Self Assessment criteria tool here:

Check if you need to send a Self Assessment tax return

If you meet the criteria for completing a Self Assessment tax return and do not have business income from being a sole trader or partner in a business, you would choose the non-self employed option.

Thank you.

Hi,

You use the disposal value, which is the sum you sold the property for. You deduct from this, the purchase price, which is the price you paid for the property. You can also deduct the costs of buying, selling or improving your property from your gain. These include estate agents and solicitors fees.

Costs of improvement works, for example for an extension and normal maintenance costs such as decorating do not count.  You can use a calculator to help you do this here:

Tax when you sell your home

Thank you.

Hi,

You will need to change the beneficial ownership of the property through a Declaration of Trust. You can see guidance here:

TSEM9150 - Ownership and income tax: legal background: ownership: legal and beneficial ownership - separation

A Declaration of Trust is a legally binding document that creates a trust. Most types of trusts giving an interest in property to somebody who is not the legal owner now need to be registered with HMRC via the Trust Registration Service. You can find guidance on the registration requirements and how to register here:

Register a trust as a trustee

There is also more information about what type of trusts need to be registered here:

TRSM23050 - Types of trust that need to be registered: contents: excluded express trusts: contents: property ownership

In order to claim the relief your wife will need to pay the mortgage service charge.

We would also confirm that the payments of the rental income need to be paid directly to your wife.

Thank you.

 

Hi,

You can claim the expenses outlined in point (a) of your question against the capital gain on the disposal of the property. You can also claim the cost of the solicitor’s fees when you acquired the property.

If you intend to let the property after the tenants had left then you can claim the expense of clearing the property against the rental income. If, however, at that time you intended to sell the property then the expense of clearing the property would not be deductible.

To qualify for post cessation expenses, the expenses have to meet the criteria set out in the following guidance:

BIM90115 - Post-cessation receipts and expenses: post-cessation trade relief: meaning of qualifying event

It appears the post cessation expenses will not be allowable.

Thank you.

Hi,

We can only refer you to the guidance that has already been given. This says that expenditure on a house, flat or other property that the landlord occupies himself or herself is not normally allowed as a deduction in computing rental business profits because it does not satisfy the "wholly and exclusively" rule. The rent that you pay on the property where you live is paid so you can live there and not in connection with the property that you rent out.

Thank you.

Hi,

You have said that the FHL rules were not met in 2022 to 2023. It is not clear whether you are aware of the guidance in our property income manual which states that when looking at the occupancy tests for a new let you apply the tests for the first 12 months from when the letting began:

PIM4110 - Furnished holiday lettings: qualifying tests for 2011-12 onwards (IT and CT)

As rental income was received in the 2022 to 2023 year you would have to show the rental income on your 2022 to 2023 tax return and claim for the allowable expenses incurred.

Thank you.

Hi,

Please contact the Stamp Duty Land Tax team for advice.

Stamp Duty Land Tax

Thank you.

Hi,

Any queries relating to the Non-resident Landlord forms you would need to contact the Non-resident Landlords team.

Non-UK resident landlords

Thank you.