Hello, I am Keith, one of the experts on Jujst Answer, and pleased to be able to help you with your question.
1. Only the letting for the period. Advance bookings should be credited to a suspense account and then debited when the net rental is received.
2. Exterior painting is not a capital, but a revenue item, and is allowable against rentals in the Corporation Tax (CT) computation.
3. Yes, providing that the costs were wholly and necessarily incurred in the operations of the business [UK tax rules].
4. The UK and Spain have a Double Taxation Convention which precludes the same income stream being taxed in both jurisdictions. This is achieved by means of tax credits, the tax paid to one country being allowed as a tax credit against the liability in another on the same income stream. The Comvention does not protect you from differences in rates of taxation. You have to make a supplementary return on a Form SA106; this form makes provision for claiming Spanish tax credits.
5. Spanish VAT is an entirely different system and should not come into the UK taxation computations.
I do hope that you have found my reply of assistance.
I fear that you might, but it will cost, well into 3 figures!
I am so sorry to have to rain on your parade.
The rental in that period, ie the UK tax year which, to add insult to injury, differs from the Spanish!
Sorry for the misleading advice; delete reference to Corporation Tax and substitute income Tax; deep apologies for the error. You can indeed proceed as you suggest as your rental income is below the 82K; makes life much simpler.
Yes, you cannot spread it in the UK save by making a loss to be carried forward against future rental income only.
Yes, you have to complete a SA106 and you claim the Spanish tax credits on that form.
Delighted to have been of assistance, Mark.
Thank you for your support.
There is a good article here Mark, I suggest it worthy of perusal: