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