Property Allowance

Property Allowance - Conflicting Advice

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A client receives income for his commercial property, from his close company and an additional £950.00 from a totally unrelated business. Clearly, he can’t claim the allowance against the close company income.  He has not claimed any costs against this income either.  Can he claim the property allowance against the second income?  

HMRC have told me that he can but I can't process this through my software as the property allowance must be flagged for all property income or none.

I would be grateful for any advice

Thank you

 

Replies (3)

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By ireallyshouldknowthisbut
29th Jan 2019 12:16

it would probably help if you read the legislation.

But in short, if there is ANY connected party buying from the business then you cant claim the £1k.

So if you sell hats, and your wife buys a hat (even at full retail), you cant claim the allowance is my understanding of how both have been written.

Thanks (1)
By Tim Vane
29th Jan 2019 14:00

Your software is right. HMRC are wrong. As usual the HMRC numpties on the phone haven’t a clue. See ITTOIA S783BL et seq.

Thanks (1)
Scooby
By gainsborough
29th Jan 2019 15:54

.....and this is the problem with our ever increasingly complicated legislation. Can anyone tell me what the Office of Tax Simplification actually do?

Hats off to all the software companies that are doing a pretty amazing job in the circumstances though!

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