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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5028
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have recently sold my house and to move the chain on I bought

Resolved Question:

I have recently sold my house and to move the chain on I bought an apartment which is being rented out.
The apartment has a management charge for servicing the communal areas and I am paying a monthly fee to an Estate Agent for managing the property. Although the apartment is only four years old I do not anticipate many expenses in upkeep although recently I had to replace a refrigerator.
Tax is paid from my state retirement pension and Teacher's Pension on a PAYE as you earn basis. Could you advise whether the above expenses are tax deductible and how do I deal with Inland Revenue in the most simple way.
Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise when the apartment was first rented out.
Do you get rental income?
Have you notified HMRC that you have income from UK property?
Do you file a tax return?

Many thanks
Customer: replied 2 years ago.

First Rented April 2015

I receive a rental Income

I have not yet notified HMRC

All my income is taxed as PAYE therefore never completed a tax return

Expert:  taxadvisor.uk replied 2 years ago.
Ian, thank you for your prompt reply..

This is what you should do...

Register for self assessment and you can do it online here

https://www.gov.uk/register-for-self-assessment/not-self-employed


This would enable you to file a tax return and declare rental income by completing supplementary pages SA105 - UK property. More information on what expenses you can claim against the rental income is covered here (SA105UK property notes)
https://www.gov.uk/government/publications/self-assessment-uk-property-sa105

The expenses you have identified in your opening statement are all allowable against the rental income in arriving at profit from UK property.

The above approach is the simpliest and correct way to deal with HMRC to cover income from more than one source.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
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