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Renewals basis for Residential Letting Property

Renewals basis for Residential Letting Property

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I have just seen an article from a landlords association stating "Landlords remain unaware of the removal (of the) tax allowance for unfurnished residential property".

A google reveals a few posts, including at least two from accountingweb about the issue. (Sorry not aware how to post links to the articles.) Along with an article today (7th May) from Taxation by Martin Edhouse Significantly the article more than once asserts "the position SEEMS to be...."

The conclusion seems to be that the removal of the extra statutory concession by HMRC does not prevent the renewals basis being claimed under S68. Has any one tested these opinions with HMRC? 

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By Steve Kesby
07th May 2015 10:35

The Taxation article that you refer to...

... was in the 27 May 2014 issue of Taxation. For the avoidance of doubt, it is now 2015.

It has also been discussed on here ad nauseum.

Essentially, at one end of the scale there's a school of thought that there never actually was a concessionary renewals basis at all (neither ESC B1 or ESC B47 introduced it; they only refer to it), and that it was always statutory after all.

At the other end of the scale is HMRC's view that you cannot claim for renewals, unless s 68 applies, and s 68 only applies to a narrow range of items. They have updated their Business Income Manual for it, and there was an exchange of correspondence between the ICAEW/CIOT and HMRC, which I think are referred to in Martin Edhouse's article.

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By ireallyshouldknowthisbut
07th May 2015 11:28


And to add to Steve's comment, which leaves advisors in the middle.

I am currently explaining to clients the area is in debate, and those who want a "white and clean" return are not claiming, and those who think these are actually quite legitimate expenses are claiming. 

Whole thing is quite frankly daft and HMRC seem reluctant to apply some sense to this. 


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By nick farrow
07th May 2015 11:45


this crossed with my query re this in practice just answered - repair or not


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Jennifer Adams
By Jennifer Adams
10th May 2015 12:22

Suggest read this ICEAW response..

'Wear has the claim gone' written by yours truly. It discusses what can and cant be claimed, under which section of the Act etc.

It will not surprise you that the professional bodies are not happy about this and as Steve says there has been an exchange of correspondence between ICEAW and HMRC. In HMRC's letter they give their stance and confirm what, their view, can and cant be claimed.

ICEAW has produced a survey which they have asked accountants to complete:

I rang ICEAW and asked whether the survey was for their members only and they said 'no' - they want all accountants/landlords etc to complete (takes about 5 mins).

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