How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4195
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I have several buy to let properties and would like to use

Customer Question

I have several buy to let properties and would like to use 1 as my main residence for easier access to work. I will refurbish the property before moving in, something I would have done whether or not I was going to reside there. As some stage I propose to let it again and increased rent. HMRC'S PIM 2510 guidance seems to imply that if the property is re let within 3 years then I will be claim the refurbishments costs as expenses as if the property had been let or at least as pre-letting costs. My assumption is that property expenses are claimed against income from all properties i.e. the business and not the single property. I currently live with parents and do not pay rent so this could not be considered my main residence.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

I am of the opinion that your assumptions are correct. Your buy to let properties aggregate to form your trading capital and operate as a block so all refurbishment expenses are pre letting costs and can be claimed against the property income. Remember that property profits and losses cannot be offset against you other sources of income, a small point, but one worth remembering.

I do hope my answer is of assistance.

Customer: replied 2 years ago.

I assume using a single property for some other use "temporarily" does not affect your opinion in particular that the expenses should be wholly for the business.

Expert:  bigduckontax replied 2 years ago.
I would suggest that this is merely de minimis in the great scheme of things. However, this temporary usage must be exactly that. Any longer term occupation would clearly be inappropriate and not unreasonably attract HMRC's attention to the matter.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.