gserghiou

Hi BellaBoo, Very interesting info you have there. which contradicts the HMRC Admin response. I will read more about it (link provided) and any articles mentioned there. Thanks once more George

Hi BellaBoo and HMRC Admin, Thank you for your responses I will try and fill out my self assessment to 'carry forward' the finance costs . If i find myself stuck and not figuring out how to do it, I will call HMRC :) Thanks for the information ! G.

Hi All, I am more or less aware how to calculate my owed tax (based on my working salary and rental income), taking into consideration the Property Allowance (£1,000) or Expenses. For the past years, the accountant was filing this for me , but this year i have decided to start using the online self assessment HMRC form. for the year 2023-2024, my property was mostly vacant, due to the previous tenant leaving and having to 'prepare' the property to be suitable to rent again. so for the year 2023-2024 my proportion (its a shared property i own 50%) of rental income was only £700 . I can see that i can claim the property allowance on the HMRC online self assessment form (but only up to 700, as it cannot exceed my stated rental income). So far so good, and i can see form the calculations that i will not pay any tax on this rental amount. However, i also have a finance cost for my share of 50% of the property which comes to £1,500 (mortgage interest). i know and have seen examples on HMRC website on how i can calculate my owed tax based on 'expenses' rather than property allowance , but at this time it was 'easier' for me just to use the property allowance. My questions is this : I have rented the property out in July 2024 and I think i will be 'entitled' to pay less tax , if I use the 'expenses method' rather than the property allowance, if I use the Finance costs as the expenses....so : Can i carry forward this 'unused' expense of Finance Cost of £1,500 for next year (2024-2025) and use it in addition to next years finance cost (ie £1,500 from 2023-2024 + lets say £1,500 for 2024-2025 ) and next year for 2024-2025 self assessment i use the total of £3,000 Finance cost (1500 from 2024-2025 and 1500 from previous year brought forward) ?? OR, if i choose 'property allowance' for 2023-2024 i cannot make use of the 'take forward' to 2024-2025 of the finance cost ? I hope my question is clear and have not confused you ! Thanks, 

Name removed admin. 

Hi , Thanks for the reply and the information. It is now clear to me. Thank you, George

Feedback to reply .

HI all, Apologies first of all as this has turned out to be a long post... I have a question regarding declaring 'foreign rental income' on the Online self assessment tax return. I understand that i need to declare this in the 'Tailor your return' section. However it is unclear to me, what options (yes/no) I should select in point 05 and 06 My current situation for the 2023-2024 tax year is that my portion of foreign rental income is Less than £1,000. This is normal house, and nothing like a 'holiday let' etc. I have tried playing around by selecting various combinations of YES/NO for point 5 and 6, and i think from trial and error and observing the values and tax due at the end of each combination, that i have the 'correct' answer, but I need to make sure with HMRC officers that I am submitting the correct information-options. my confusion relates to the following points : point 5 says : Did you receive income from UK land and/or property (including income from foreign property) over £1,000? Please check help before selecting so i guess i should select NO to this. point 6 says,: If you received any foreign income, do you need to complete the foreign section? Please check help before selecting which i select YES, if I select NO to point 5 and YES to point 6 , I am then given the chance to declare (from point 6) that i have foreign income and this foreign income is from RENT and i then of course give the details etc ! however, when i get the 'overview' of 'Check your return' the system says : you did NOT receive income from property !!!! which is not true, as i am stating this in the foreign section. maybe this only relates to point 5 and UK rental income ??? this is so confusing. If i declare YES to point 5, as it says UK rental income BUT in parenthesis it mentions (including income from foreign property) and of course YES to point 6, then i am presented wiht UK renatl income for a UK property and foreign rental income, and the system then tries to calculate tax (i know this as it will only allow me to split the £1000 rental allowance between the 2 properties it thinks i now rent out !!! ) So to me this is wrong, as I do NOT have both a UK property i rent out , as well as a property abroad that i rent out !!! So, is there anyone who can help me as to what I should choose for point 5 and point 6 in the Tailor your return section please ? as mentioned, For tax year 2023-2024 my portion of foreign rental income was less than £1,000 and also, what would i choose (this is for next year as the property will be rented starting from this July onwards) for 2024-2025 that my portion of foreign rental income will be more than £1,000 ?? from what i have observed i should still say NO to point 5, and YES to point 6, stating that my foreign income is from Rent and declare the details then !! Thanks, George