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Ltd company property mortgage interest

Completing the CT600 which box to put mortgage interest in?

I'm completing my first corporation tax return for a newly formed limited company which owns one residential property that is being rented out.  under FRS102 it is an investment property.  rental income is shown on the P&L under other operating income. 

There is a mortgage taken out in the company name,  being the first year of trading the company has made a loss as it took longer than expected to rent it out.

On the CT600 I have completed the property page, showing the loss, it is all being shown as property loss, not ltrading loss. Which box will the mortgage interest go on - does it get added o the property expenses or is there a specific box to put it in? Is it box 260 and box 295?

 

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By ms998
10th Nov 2017 12:42

Is it a cost of the property or is a non trading loan relationship? I suspect you know really.

I am intrigued about this property page though. Which page on the CT600 (2017) version 3 is this? Do you mean property Box?

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By JWB
10th Nov 2017 15:09

Could you explain the difference between cost of the property and non trading loan relationship? I've only dealt with people owning rental properties before, this is the first time I've prepared accounts for one owned by a limited company.
I use BTC software to prepare the CT600 returns and they have a property page, actually looking at it now, it is a property worksheet and doesn't form part of the CT600 return although the figures are pulled from it to go on the CT600. Hence the question about mortgage interest ..

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By DJKL
to JWB
10th Nov 2017 15:56

I think the responder means "a cost of the rental business", like say repairs, rather than a "cost of the property" which implies say acquisition.

The interest (and appropriate mortgage fee costs) will be a debit to NTLR, note that recognition of fees will be recognised under normal accounting conventions, so if say arrangement fee covering ten year term then strictly 1/10th released each year.

The net property rental, receivable less costs ,goes in the property boxes on the return. (Profit or loss dictates where 190 or 250)

If company has other profits (say trading) besides the rental profits (or in this case loss)you will need to consider the use of rental loss and NTLR debit against same.

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to DJKL
20th Nov 2017 13:14

I also have newly set up limited company which owns one holiday rental and one residential rental.
First year. Have completed the accounts but am really struggling to complete the ct600.
My company made a loss but when I try to enter the figure in box 250 or 275 I am not allowed as this figure 'must not be greater than box 275'. But surely as it is a loss the figure will be less than my income!!
Any advice?

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to Aardwolf
20th Nov 2017 14:01

Aardwolf wrote:

I also have newly set up limited company which owns one holiday rental and one residential rental.
First year. Have completed the accounts but am really struggling to complete the ct600.
My company made a loss but when I try to enter the figure in box 250 or 275 I am not allowed as this figure 'must not be greater than box 275'. But surely as it is a loss the figure will be less than my income!!
Any advice?

Yes...go see an accountant or tax advisor.

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By JWB
to Aardwolf
20th Nov 2017 14:03

I'm finding the CT600 very difficult to navigate, I have put the mortgage interest in box 260 which feeds into box 295 and 795. The UK property loss is in box 805.
Can anyone please advise if this is correct?
Many thanks

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20th Nov 2017 15:46

Hah! I will not give in to see an account! The accounts are done it is purely filling in that awful ct600 form!
I have researched and also found that property loss goes in box 805.
You can only claim rental losses of up to the income amount you received in box 250. You carry the rest of the loss amount to deduct from next years profit.
waiting for HMRC to call me back and confirm...

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