BellaBoo

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4460 "Where a landlord has residential finance costs that would be restricted in that tax year because of ITTOIA05/S272A, they will have the choice to: either claim their expenses (including any allowable finance costs) and the reducer or use the property income allowance (whether Full or Partial Relief) Where the choice is made to use the property income allowance, a carried-forward amount, as defined by S274A(6) cannot be created for that year to be used against the individual’s future years’ income tax liability."

Hi, Just to follow up to your question on my reply, in your case it is the employment rather than the workplace that is temporary. The 24 month rule actually only applies to temporary workplaces - if you are at a temporary workplace more than 24 months then it will become a permanent workplace. However being at a permanent workplace for less than 24 months will not make that permanent workplace a temporary workplace (because the 24 month rule only applies to temp workplaces, to make it permanent). Hope that helps but please let me know if it hasn't.

Hi, I'm not an Admin but think I can provide a clear answer. There are no separate reliefs for accommodation as this would ordinarily be a personal expense (required for your comfort, rest and health rather than because of any business purpose). However the relief for travel expenses is such that it covers costs that are associated with business travel rather than just covering the cost of the travel itself. This means in order to claim accommodation costs, there needs to be business travel. As you've stated this is a permanent workplace, this means the travel is personal rather than business and no associated travel costs (including the accommodation) can be claimed. https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31815 And see, in particular, the last sentence in example 4. https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31816 Sorry it wasn't better news.

Hi, not an Admin but unfortunately travel expenses, which includes accommodation and food, are not allowable where travel is to a permanent workplace. When you are engaged via an agency, each engagement is deemed to be a separate employment. So even if the contract you accept is only for a week or two at a practice 300 miles away, it counts as a permanent workplace sadly. https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32125

Hi not HMRC Admin but pension or wages can only be paid to employees or directors as remuneration for the work they perform and is only deductible from corp tax calculations if wholly and exclusively for the purpose of the trade. So if the remuneration was excessive for the duties carried out you would disallow the excess. Shareholders are only entitled to dividends. They can't be paid via pension or wages.

Hi, not a HMRC Admin but I can explain HMRC's responsibility (as a department) is tax so they can only answer tax questions. What you're asking about is deprivation of assets. It can apply to DWP administered benefits too but in this case you're talking about deprivation of assets in relation to care funding provided by your local government (council). Each council may have a different policy for enforcing deprivation of assets so you may find your council are the best ones to ask.

Hi, I'm not a HMRC Admin but you'd only be able to claim the 24/25 finance costs against the 24/25 rental income. If you claim the property allowance for 23/24 then no expenses can be claimed for the 23/24 year (including the finance costs). You can't claim 23/24 expenses against 24/25 income (although if you had a loss from 23/24 or unused finance costs then those could be carried forward to be used against profits in future years).

Additionally, just to explain, I didn't provide that information in the first reply because I'm trying not to step on the Admin's toes and was hoping my post would act as a prompt for them to review the question that had been asked and the answer given.

I appreciate you don't know me, which is why I advised the information comes from the official published guidance, provided by HMRC to help you to complete your return correctly (so you could verify it yourself, because I realise I'm contradicting one of the Admin). You are misunderstanding the paragraph in PIM2054. The legislation makes it clearer. https://www.legislation.gov.uk/ukpga/2005/5/section/272B Look at (2) and (3) and you will see the wording in the manual about being for the acquisition, construction or adaption extends the application of para (2) rather than narrowly defining it. The interest restrictions apply to all finance taken out for a property business that consists of generating income from a dwelling-house. It doesn't just apply to loans for a dwelling house. Which is why it is called a dwelling-related loan rather than a dwelling loan. Sort of like the exemption for work related training for employees, if you're familiar with that area at all. But in case you're not, have a other look at PIM2052 (I'm going to post a slightly edited version to make it clearer on what it is actually saying, but im also telling you this to be fully transparent); "For tax years up to and including 2016/17, interest payable under hire purchase agreements or on an overdraft is deductible where the asset is used for business purposes. From 2020-21 onwards, no deduction is allowed in calculating the profits. An individual customer may deduct from his or her tax liability for the year an amount equivalent to the otherwise unrelieved interest and finance costs multiplied by the basic rate of tax for the year in question." https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2052

Hi, I'm not an Admin but I think you may have misunderstood form 17. As a married couple the default basis is you are taxed as owning 50% each (irrespective of the share actually owned). But if you hold unequal shares, you can inform HMRC via form 17 that the actual shares held are not 50% each and you wish to be taxed on your actual share rather than the default share. If you own 50% each then the actual basis and the default basis return the same result, you are taxed on 50% each. To change it you would need to hold the beneficial ownership in unequal shares (one would need to own 70% of the beneficial interest to be entitled to 70% of the income). However if you read through TSEM that the Admin have linked, you will find a section on settlements which explains if a spouse transfers only the right to income (they do not also transfer the beneficial interest in the capital) then the transfer has no effect for tax purposes and the income remains taxable on the spouse who transferred it. It is only if you transfer the beneficial ownership of the property that the income is taxable on the recipient spouse. Or you may find this helpsheet easier to read than the TSEM https://www.gov.uk/government/publications/trusts-and-settlements-income-treated-as-the-settlors-hs270-self-assessment-helpsheet/hs270-trusts-and-settlements-income-treated-as-the-settlors-2024