Stephanie Duprat

Hi team, With my two 2023-2024 payments on account, I paid more than the amount of tax I actually owe for 2023-2024. Do I need to do anything to be refunded? And can I deduct the overpaid amount from my next payment on account? Thanks a lot

Thanks a lot, this is very clear, I will therefore deduct the commissions of the real estate agents for the first 2 years I rented out the property from my rental income. Have a lovely day

Super, thanks a lot for your precious help

Thanks a lot. So I can deduct the commissions of the real estate agents for the first 2 years I rented out the property from my rental income, right? That just means I wont be able to deduct them again as a Capital Expense on the sale of the property, is that correct?

Thanks a lot for your answer, I understand now, there has been a confusion between what can be deducted for rental and for capital gains. Does that mean that the commissions of the real estate agents for the first 2 years I rented out the property can be deducted form my rental income, or not? Thanks a lot for your help

Thanks a lot, this is very helpful If I make 2 payments on account and the sum is less than the tax I owe for the following year, will I be charged interests even if I pay the difference/‘balancing payment’ by midnight on 31 January of the following year? Thanks a lot

Thanks a lot for your answer. I let my property for the first time in March 2022, with a 2 years’ lease. I am paying my agents’ commission for this first letting over 2 years, meaning instead of taking their commission upfront they spread it over the term of the lease and take a percentage of the rent each month. Are those considered “costs for the first letting or subletting of a property for more than a year, and therefore non deductible? This is how I first understood the below, but one of your colleagues told me they were deductible so I am a bit confused: “The expenses incurred in connection with the first letting or subletting of a property for more than one year are capital expenditure and therefore not allowable. The expenses include, for example, legal expenses (such as the cost of drawing up the lease), agent’s and surveyor’s fees and commission. Expenses for a let of a year or less can be deducted.” Thanks a lot

Thanks a lot for your answer. If I understand well, that means I can deduct/claim real-estate agents’ fees incurred in connection with the first letting or subletting of my property for more than one year, but then I would not be able to claim them against a capital gain when I sell the property, is that correct? Thanks a lot and have a lovely day

Thanks a lot Alex. I started renting out my flat in March 2022 so last year I almost didn’t pay any tax, and I was not asked to make any payment on account for this year. This is the issue, now I end up having to pay 150% of the amount due for 2022/2023. Is there any chance I can ask for my first 2023/2024 payment on account to happen later than January 2024? Also, what would happen if my 2 payments on account end up exceeding the tax I owe for 2023/2024? Because I am being asked for 2 payments on account for 2023/2024 that each equal to 50% of what I owe for 2022/2023, should it be 33.33% and not 50%? Thanks a lot for your precious help

Hi. Starting a new thread to make sure I understood everything correctly. I have property income for 2022/2023. I rented out my property for the first time in March 2022, for 24 months and through a real-estate agency. The agency’s commissions correspond to a percentage of the rent I will be getting over these 24 months and, instead of paying them as a one-off, I pay them on a monthly basis (the agency deducts their fees from the rent each month). I read this manual (https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120) and it says: “The expenses incurred in connection with the first letting or subletting of a property for more than one year are capital expenditure and therefore not allowable. The expenses include, for example, legal expenses (such as the cost of drawing up the lease), agent’s and surveyor’s fees and commission. Expenses for a let of a year or less can be deducted.” However one of your colleagues told me that, as long as my real-estate agent’s commissions can be considered of a revenue nature based on the below paragraph, they can be deducted even if it is a first time rental: “Expenditure on professional fees of a revenue nature is deductible if they are incurred for the purposes of the rental business. Professional fees are not allowable if they are capital or they are not incurred wholly and exclusively for the purposes of the rental business. Generally, the fees are capital if they relate to a capital matter, such as the purchase of property.” Could you please confirm this is correct? Thanks a lot