HMRC Admin 8 Response

Hi,
We can advise that these expenses cannot be claimed in the previous tax year and should be claimed in the next tax year if the rental business is continuing.
Further information can be found at PIM2510.
Thank you.

Hi,
Please refer you to TSEM9851 which states the following- ‘Where married couples or civil partners elect not to be taxed 50/50, the normal rules of beneficial ownership apply.
The starting point is that the jointly held property is presumed to be held as joint tenants (TSEM9230).
As TSEM9230 says, there are various ways this presumption can be displaced by evidence to the contrary - for example, a valid declaration of trust in equal or unequal shares.
However, if the shares are equal there would be no possibility of a joint declaration on form 17 for tax purposes, so only a declaration in respect of unequal shares would be correct.
Thank you.

Hi,
Individuals will be able to claim a basic rate tax reduction from their Income Tax liability on the portion of finance costs not deducted in calculating the profit. In practice this tax reduction will be calculated as 20% of the lower of the:
finance costs not deducted from income in the tax year (25% for 2017 to 2018, 50% for 2018 to 2019, 75% for 2019 to 2020 and 100% thereafter)
•    profits of the property business in the tax year
•    total income (excluding savings income and dividend income) that exceeds the personal allowance and blind person’s allowance in the tax year
Any excess finance costs may be carried forward to following years if the tax reduction has been limited to 20% of the profits of the property business in the tax year. If the figures quoted in your question are specific to your own 2023-24 tax calculation, please contact us on 0300 200 3310.
Thank you.

Hi,
Please see the relevant information at:
Work out your rental income when you let property
Thank you.

Hi,
We automatically assume a 50/50 split regarding beneficial interest for a differing beneficial interest percentage you would need to complete a form 17 please see the relevant guidance at:
Declare beneficial interests in joint property and income
Thank you.

Hi,
As you own the property jointly then HMRC assume it is a 50/50 split.
To change the percentage you will need to complete a Form 17 and a deed of trust to show the new split.
As non-residents you would still declare Income from property to HMRC.
Thank you.

Hi,
We can confirm that the correct process for separating income from a property that you have 100% beneficial ownership of is to draw up a declaration of Trust.
It is not necessary to register this with HMRC and your daughter can start reporting the income in accordance with the new arrangement from the date the declaration of Trust is drawn up:
TSEM9100 - 9170
Thank you.

Hi,
We can confirm that you can treat the cost of replacing the kitchen & bathroom as a repair.
You carried out the refurbishments to bring the rooms up to todays standards and replaced old with new more modern facilities... the work is a repair and not an improvement if, after the work is carried out, the asset can just do the same job as before.
Further information can be found at:
PIM2025 which links into BIM46900 and this particular scenario is covered at BIM46920
Thank you.

Hi,
Given that there is no tax loss to HMRC we would suggest that it will not be necessary to make a disclosure and you will only need .to correct your tax returns for in date years.
For yourself that would mean making claims to Overpayment Relief from 20/21 and the other party should submit tax returns with their share of income for the same and future tax periods.
Thank you.

Hi,
Forms 17 are acknowledged when they are processed. Please wait for receipt of this before completing your tax return and reporting the split of income the form 17 relates to. 
Thank you.