Service charges and repairs – Allowable expenses?

Service charges and repairs – Allowable expenses?

0:43 AM, 1st July 2022, About 2 years ago 4

Text Size

My daughter is living, rent-free, in my last remaining BTL, a leasehold flat. Decided that with all the additional legislation coming to get out of the PRS.

In 2021-22 I did not rent out the 2nd bedroom due to worries re Covid and having eventually managed to remove my daughter’s flatmate from hell.

I am still liable, as owner, for the monthly service charge and any additional repairs/exterior and communal maintenance.

1. Can I claim these expenses as allowable expenses to offset against income for 2021-22? I am also a freelance editor and now a state pensioner with a minuscule private pension which didn’t perform as I hoped it would.

2. Tax year 2022-23 the 2nd bedroom has/will be spasmodically rented out, either as a short excluded occupancy (1-8 weeks) or for odd nights to visiting actors coming to London for auditions/rehearsals/the odd performance or film shoot etc.
Can I offset the monthly service charge, any additional repairs/exterior and communal maintenance plus laundry/cleaning against income?

Many thanks

Judith


Share This Article


Comments

David Smith

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:28 AM, 1st July 2022, About 2 years ago

I would say yes you can claim your Service Charge from 2021/22 because the property did not cease trading it was just run at a loss because the spare room was not let out.

You can even carry nett losses over to the next tax year.

DPT

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

18:16 PM, 1st July 2022, About 2 years ago

Offset against what if you have no rental income and your letting business has ceased?

David Smith

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

18:29 PM, 1st July 2022, About 2 years ago

Reply to the comment left by David at 01/07/2022 - 18:16
The business hasn’t ceased trading and made a loss in 2021/22. Thus the second room is being let in 2022. plus you can carry over a loss to a profit year hence she can offset the service charge against 2022 tax year

Cathie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

22:43 PM, 1st July 2022, About 2 years ago

Does it have a mortgage? Is it BTL and do they know that your tenant is a relative?

So if you are not getting market rent for it, your expenses you can claim will be limited. You need to look at the HMRC guidelines.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More