Need Help Completing Uk Self Cert Tax Return

[slippery when wet]

Hello All.

I am after some advice and hope that you can help and hopefully shed some light on my tax query.

I presently live in the UK with my Thai wife and last year we remortgaged a flat /appartment to raise the deposit to purchase a further property. As both properties are currently being let out I was wondering if when I come to completing the self cert a tax return I could put these costs (initial deposits on both properties and solicitors fees) against tax.

If this is possible it would be a substantial amount about £40k

Any advice would be greatly appreciated.

Thank you.

[plasticpig]

Hello All.

I am after some advice and hope that you can help and hopefully shed some light on my tax query.

I presently live in the UK with my Thai wife and last year we remortgaged a flat /appartment to raise the deposit to purchase a further property. As both properties are currently being let out I was wondering if when I come to completing the self cert a tax return I could put these costs (initial deposits on both properties and solicitors fees) against tax.

If this is possible it would be a substantial amount about £40k

Any advice would be greatly appreciated.

Thank you.

Look if you think you can save 40k.

Go get some real legal advice.

Sorry but don't be cheap, its 40k .

[taxexile]

as far as i know you cant offset the purchase price against tax , but the costs incurred in buying the properties (e.g. legal fees) can be offset against the rental income when calculating your tax liability.

as a previous poster advised , it is well worth using the services of an accountant to fill out the forms for you and also to deal with the tax office. the inland revenue are notoriously unforgiving when it comes to incorrect tax returns.

[Riley'sLife]

Initial Deposits- -No. (They are capital payments)

Legal Fees- -Yes (They are outgoings)

[thaigene2]

Sorry - slightly off topic. But if I am UK citizen who was, by my last tax return, deemed a foreign 'domicile' do I need to worry about any of this?

TG2

[game4shame]

Hello All.

I am after some advice and hope that you can help and hopefully shed some light on my tax query.

I presently live in the UK with my Thai wife and last year we remortgaged a flat /appartment to raise the deposit to purchase a further property. As both properties are currently being let out I was wondering if when I come to completing the self cert a tax return I could put these costs (initial deposits on both properties and solicitors fees) against tax.

If this is possible it would be a substantial amount about £40k

Any advice would be greatly appreciated.

Thank you.

iirc you can include the legals but not deposits.

go to your nearest HMRC office or call the self assessment helpline:

SA helpline

HM Revenue & Customs

[fletchsmile]

Duplicate thread also posted in Real Estatte section.

BTW For people who have put legal fees as deductible, you might want to check again. My knowlede of UK tax is a little dated, but my understanding was that legal fees on acquiring a property are viewed as cappital in nature and not deductible. Fees related to revenue/income eg for making a lease might be deductible. This Depends on certain factors tho' eg is it the first lease?

Edited October 7, 2007 by fletchthai68

[fletchsmile]

Sorry - slightly off topic. But if I am UK citizen who was, by my last tax return, deemed a foreign 'domicile' do I need to worry about any of this?

TG2

Domicile is most important for inheritance tax. BTW how did you change it????

Residency is more important for income tax. So depending on residency you may need to worry. There are also some specific tax rules if I recall for foreign landlords in the UK. So if you're letting property you might want to check.

[cmsally]

How did you change to a foreign domicile; as I understand it is pretty near impossible to change.