Tuesday, 10 December 2013

Rental Properties

Do you own a property which you rent out and currently pay for replacement curtains, carpets & kitchen appliances? if so then read on.

Unfurnished Lettings

As from 6th April 2013 the Revenue have abolished the renewals basis.  Up to this time it was possible to claim tax relief on such expenditure as the replacement of curtains, carpets and kitchen appliances. Expenditure of this nature will no longer attract tax relief. Consequently in the future it would be advisable to ensure that the tenants incur the cost of these items and in return you may wish to reduce the rent accordingly?

Furnished lettings

Wear and Tear allowance continues to be given at 10% of the rental income  (after taking account of expenses paid that are normally the tenants responsibility) In order to qualify for this relief it is essential however that the furnishings that you are providing are sufficient in their own right to enable the occupants to experience normal living without them having to add additional items.

Split of rental profits on jointly owned property (where not married or in a civil partnership)

Profits between’ joint owners’ are normally split in accordance with the share owned. This can be stipulated in a declaration of trust and can be varied. In cases where the property is acquired as ‘tenants in common’ the separate ownership of a stipulated share is registered. Joint owners can agree a differing split of the net profit from the actual share owned.

Split of rental profits on jointly owned property – married couples or civil partners

Irrespective of how the property is owned the taxation of profits is on a 50:50 basis unless a declaration of unequal beneficial interest is made

For more information please contact us : www.ktcselby.co.uk/contact