HMRC Admin 21 Response

Hi parallelcottages,
Thank you for your question. We can only follow the guidance available to us and BIM45700 relates to the withdrawal of profits/capital in a business and substitute it for interest bearing loan which can qualify as an allowable deduction on the proviso that the loan is used as working capital in the self same business. You offered no details to your question and further it is not an approriate question for the income from property forum. I strongly recommend that you correspond with HMRC, outlining your observations with the case you refer to. 
Thank you.

Hi MrsPeacock,
Its not clear whether you ceased having income from property in 2022/23 or 2021/22 tax year. The financial costs you mentioned relate to income form property and not connected with capital gains as they are not a capital expenditure (which can reduce a CGT bill). I'll need details on when this repayment charge took place and when you ceased the operate as a landlord. I suggest you call HMRC to discuss the details.
Thank you.

Hi Ksiko,
If there had been an intention to restore the property to let it out again we could consider these as allowable repairs/expenses against IFP. As you appear to have withdrawn the property from letting these outgoings/repairs will count as capital expenditure against capital gains arising from the ultimate sale of the property as they will enhance the asset and increase its sale price.
Thank you.
 

Hi Greg,
Thank you for your question. If you claim the £1000 property income alownace you cannot also claim expenses against all other property income, ie unused residential property finance costs. Further guidance is held on this topic in your HMRC You Tube channel. 
Thank you.

Hi tablesandchairs,
Thank you for your question. We can approve the expenses incurred in pre-letting your property under the HMRC guidance PiM2505 but please check that you meet the considered criteria to do so. 
Thank you.

Hi parallelcottages,
The re-mortgage would not be allowable against any future expenses.
Thank you.

 

Hi CW1945,
You would need to contact us direct for this information on 0300 200 3310.
Thank you.

Hi Martyn,
No this doesnt need to be reported.
Thank you.

Hi atakinuz,
This depends on your tax residence status. If UK resident and domicile, you are liable on your worldwide income. Please refer to guidance at Tax on foreign income.
Thank you.