Did you know that when you rent out all or part of your home a Capital Gains Tax (CGT) charge may apply when you sell the property? Currently, HMRC exclude the last 18 months of your ownership – even if the property is let for this time – when assessing any CGT liability. However, in a draft of the Finance Bill released earlier this year, HMRC have confirmed that this 18-month period will be reduced to 9 months from April 2020. Disabled property owners, or those in a care home, will continue to be exempt for 36 months.
If you are a landlord or have a portfolio of properties, you can claim ‘wholly incurred’ expenses against your property income. Expenses must follow the standard HMRC guidance and the expenses must be exclusively for the purpose of renting out the property.
HMRC provide a number of examples of allowable expenses including:
If you buy a new vacuum cleaner for your own home, and also use it to clean your rental property between tenants, you can’t claim the cost of the vacuum cleaner as an expense against your rental income.
However, you could claim the cost of any cleaning products you bought specifically for cleaning the rental property.
Where costs are incurred partly for your rental business and partly for some other purpose you may be able to claim a proportion of that cost if that part can be separately identified as being incurred wholly and exclusively for the purposes of the property rental business.
Tenant Fees Ban. How will landlords and tenants be affected?
The new Tenant Fees Act comes into force on the 1st June 2019. So what is it? And how will it affect landlords and tenants?
Historically, the Christmas and New Year holidays see record visits to sites such as Rightmove and Zoopla, with over 1.6m properties viewed online as people escape the Christmas turkey to think about their next move.
Understandably, many people are reluctant to sell or let their property until after the New Year. But, if you are thinking of moving, selling or letting a property in January, can you afford not to put your property in front of potential buyers at this important time of year?
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