Income from property

In message , Bev writes

Only on your profit. You can offset expenses such as; the interest on any loan you have taken or mortgage you have given in order to be able to buy the property, buildings insurance premiums etc.,

If you sell it for a profit you might alse be liable to Capital Gains Tax.

The profit will be added to you current income and will be taxed at the marginal rate(s) applicable.

What happens if the house burns down? Storm damage etc? Is the house actually insured by anyone?

At a guess, the lease will say it's down to the leaseholders to insure and / or repair any damage - and being the builders, that's probably easier for them to arrange than most :-}

A few poitns:

Maybe it is the owner who needs to insure it. When you rent a house in the normal way the buildings insurance is the responsibility of the owner.

Suppose the OP had agreed a discounted purchase price in exchange for the developers right to show people round the house. Would that discount be taxable?

Robert

No.

When I rented out a property, the agent strongly recommended that I take out insurance myself rather that agree to the tenant arranging it himself. Its too much of a risk to take that the tenant might fail to renew the policy on time just prior to some serious damage occurring. There's also the issue of third-party liability if, for example, a passer-by gets injured by a tile falling off the roof and makes a claim against you as the property owner.

Chris

I think the tenant would never be responsible for such insurance, only insuring his/her own contents.

Somethings a landlord has to prioritise (e.g. gas/fire/elec safety). Insurance, and rental guarantee insurance are probably a waste of time.

Incidentally, the only insurance offsetable against tax is rental guarantee insurance.

Hide quoted text -

You don't mean that, do you? "insurance *and* RGI are a waste"? Buildings insurance is *vital*. RGI probably is a waste of money.

Which GDTP told you that?

It's not true. RGI is indeed an allowable expense, but so is buildings insurance, and contents insurance too (in respect of any contents belonging to the landlord).

In message , snipped-for-privacy@yahoo.co.uk writes

??? Shome mishtake shurely.

That's straightforward common sense as the landlord has a far greater interest in protecting their property. Further, I believe that the law places no requirement on a tenant to insure property/equipment that is, in law, the landlord's responsibility. Whether this can be overturned under contract law I don't know.

Daytona

"Colin Wilson" wrote in message news: snipped-for-privacy@news.individual.net...

But considering the amount of money we`re talking about here, it`s worth more than a guess :-)

It can't

I'm suprised that you don't have a copy of this document to hand at all times.

tim

I read it when it came out, so I knew that it's an issue, but I've forgotten the details.

Daytona

We have an agreement with the building company and it is still insured by them.

In message , Bev writes

In effect you have provided the builder with a very cheap unsecured loan.

It is what HMRC told me over the phone, re BTL.

E.g. you cannot offset MPPI (apparently).

I think its obvious that mortgage payment protection is not offsettable for a BTL and I am at a loss to understand why a landlord would wish to buy such insurance as the payments on the loan are based on the rental income.

I can not understand how the HMR&C statement about MPPI means you can only set off rental guarantee insurance. You can most certainly offset buildings insurance premiums as well.

I have read the help sheets on the HMRC website with regard to income from land and property, but I am still confused as to what I can deduct as expenses. We have no expenses as such in the running of the house i.e. water, gas, electric, insurance, garden maint etc. But we have mortgage interest, solicitor fees etc. I have read that we can claim loan interest. Do we ask the mortgage company for a breakdown of our monthly payment and include the interest as an expense?

Also we own the house we are living in at the moment (no mortgage), if we didn't have somewhere to live we would have to rent elsewhere, would this rent have been classed as an expense?

Mank thanks,

Mrs S

yes, but only the interest.

You can include all 'admin' fees.

Most definately not.

tim