Hi Guys - Need some advice

Pigpen Registered Posts: 331 Dedicated contributor 🦉
Hi all who I haven't spoken to for a while and those on FB know I am alive and well - Lol

Need a bit of help if truth be told - A friend of mine has received a letter from the revenue ref a flat she rented for approx 5 years between 2000 & 2005 (How they have tracked her down now I have no idea) Someone suggested the revenue was checking income support claims and if someone living in her flat at the time had claimed then that is how they found her. She knows she should have declared it but that issue is history.

basically for at least two of those years she made less than it cost her to but she reckons in the 5 year period she probably made no more than £2000 in total. Can she carry the losses forward at thia late stage? I have drafted her a response letter basically admitting that she was renting the flat in this period as she won't get away with it and giving them the basic info they require whilst advising them that she is collating all the info for the period concerened and how would they like her to proceed - Does this sound ok?

She lived in the flat herself for the first few years of ownership so I think even calculating how much of the profit she could be taxed on she is outside a capital gains charge as the tax on the profit on the sale is less than that years CGT allowance. She is a lower rate tax payer.

I am thinking that she can deduct agents fees - Mortgage Int payments - insurances - 10% wear & tear (furnished) and some maint costs from the rental income - is this correct ? Anyone got any advice on how she should hadle the enquiry - I am trying to help her but don't want to get it all wrong and mis-inform her. What about fines? what are they likely to be?

Thanks for your help everyone



  • Lydiajayne
    Lydiajayne Registered Posts: 4 New contributor 🐸
    Hi, I would recommend that your friend reply and provide all information as required by IR, they are very approachable and will assist where possible. Your friend will be able to claim ALL costs incurred in renting out the flat to tenants, I have previously rented to tenants and have clients who have property also, so can confirm your thoughts on expenses. Cannot help on fines, this is down to IR, all I can advise is go with the follow and talk to the officer mentioned on the letter, they are willing to help if asked.
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