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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My daughter is buying a house which should complete at the

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My daughter is buying a house which should complete at the end of this month. Initially she intended to live in it herself, but this may now not be possible. If the property has to be rented, are there any benefits or tax concessions she could claim in the light of the changing regulations on buy to rent property, regarding tax relief, renovations or updates on the property, please? Also, would it be beneficial to have an Accountant or Tax consultant from the outset?
Many thanks.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

No there are no reliefs due - but any rents she collects and declares, she can claim a percentage of the interest suffered on any mortgage/loan repayment (which has restrictions in effect from 06/04/2019 - see link here https://www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords )

Then she can claim for any credit or referencing checks, repairs (day to day repairs when rtenants are in situ) insurances etc - managing agent fees/ advertising

But when she sells there will be a capital gain position to consider from which capital improvements (such as new kitchen, new bathroom etc) can be offset, and the costs to buy and sell (so legal and estate agent fees)

As rental income is quite a simple declaration to make within self assessment and accountant or tax consultant would not be needed, but might be preferred so the right things are claimed at the right time

Let me know if I Can assist further

Thanks

Sam

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