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  • Re: Repairs before First Time tenants Move In (new Buy-To-Let Purchase)

    Hi,

    A customer may incur expenses for the purposes of a rental business before that business starts. If so, they may be able to claim a deduction for them once the letting begins (ITTOIA05/S57

    or CTA09/S61). Relief is only due under these special rules where the expenditure:

    •    is incurred within a period of seven years before the date the rental business is started, and

    •    is not otherwise allowable as a deduction for tax purposes, and

    •    would have been allowed as a deduction if it had been incurred after the rental business started.

    This means that, to be allowable, the expenditure must be incurred wholly and exclusively for the purposes of the rental business and must not be capital expenditure.

    See PIM2505 - I have included below some guidance on revenue v capital and HMRCs pre letting expenses guidance:

    Work out your rental income when you let property

    Property Income Manual

    Thank you.
     
  • Re: Transfer of Swiss Pension

    Hi,

    As suggested if you are a Swiss resident with a UK pension then you can get relief from the UK on this on the basis you are declaring this to the Swiss authorities. You will need to

    complete the relevant DT form:

    Digest of Double Taxation Treaties April 2018

    and

    Double Taxation: UK-Switzerland (Form Switzerland-Individual)

    As a Swiss resident, the Swiss authorites have the right to tax this pension so to avoid double taxation it would be best to complete the above form.  If however this is a government pension,

    then this would remain taxable in the UK unless you are BOTH a resident AND national of Switzerland. Likewise conditions change if this were a lump sum. You need to chcek the double

    taxation agreement with the type of pension you have. 

    Thank you.

     
  • Re: Reverse Charge VAT for NON-VAT REGISTERED UK LTD SELLERS

    Hi,

    For a supply of services from overseas to be accounted for on the reverse charge then it would be specific to the following conditions being met:

    If you’re a UK recipient of services from a non-UK supplier the following rules apply to you.

    The reverse charge applies where:

    •the place of supply is the UK

    •the supplier belongs outside the UK

    •you belong in the UK

    •the supply is not exempt (this includes exempt supplies subject to an option to tax)

    •for supplies not within the general rule, you’re VAT registered in the UK

    Please see the link below:

    Place of supply of services (VAT Notice 741A)

    As you can see the Business customer has to belong in the UK for the reverse charge to come in to effect and so if the entity is a non established Uk entity then the reverse charge

    wouldn't apply.

    However you have stated that the company is UK incorporated so this would suggest that they are a UK entity.

    The guidance states that:

    9.1  NETP – definition

    A non-established taxable person (NETP) is any person who is not normally resident in the UK, does not have a UK establishment and, in the case of a company, is not incorporated in the UK.

    Please see guidance below:

    Who should register for VAT (VAT Notice 700/1)

    Thank you.

     
  • Re: HS253 Furnished holiday lettings (FHL)

    Hi,

    Your earlier question has been referred for technical guidance. We will contact you when a full response is held.

    Thank you.

     
  • Re: adding VAT number to a government gateway

    Hi,

    If you complete the clients returns via your Agent Service Account then you can set up a separate MTD account as an organisation. Only one organisation MTD account is allowed however.

    Thank you.


     
  • Re: Tax rule while transferring money from India to UK

    Hi,

    You only need to pay tax on the transfer if you have claimed the remittance basis on any of this income in the past. If this income was earned while UK tax resident then it should have been

    reported already. There are no income tax implications on the transfer of money as a gift from parents. 

    Thank you.
     
  • Re: Capital Gain Tax on overseas properties

    Hi,

    It is stamp duty so this would be allowable. 

    Thank you.

     
  • Re: Canadian savings

    Hi,

    The latest version of DT4605 supplemented by DT4617 supports a UK capital tax charge on the disposal of assets held within the plan (which subsequently enable the lump sum to be

    withdrawn). Only expenditure which falls into the categories defined in TCGA92/S38 may be allowed as a deduction in calculating the amount of the gain or loss on a disposal of

    chargeable assets:

    Capital Gains Manual

    Thank you.
  • Re: FHL share of profit and loss

    Hi,

    A caravan, which is provided mainly for holiday lettings on a holiday caravan site that meets the FHL will generally qualify as plant for capital allowance purposes - CA22100 - Capital
    Allowances Manual - HMRC internal manual - GOV.UK (www.gov.uk)

    If it is partly used for private purposes (for example outside the holiday letting season) an appropriate fraction only of the capital allowances will be due, as with any capital allowances claim where there is private use. Generally, we would expect capital allowances are split in the same manner as any other expense on the assumption that the conditions are satisfied for expenditure to be qualifying expenditure.

    Capital Allowances Manual

    Each joint owner is personally responsible for including their share of the profit or loss in their own tax return even if they agree that someone else will keep the records.

    HS253 Furnished holiday lettings (2020)

    Capital allowances and balancing charges (Self Assessment helpsheet HS252)

    Thank you.