Rental Income - any tips please?!

Emrhino

Just gained a new client who owns 5 houses that she rents out - 3 owned jointly with 2 family members, 2 solely owned.

They also sold a 6th house in January 2011 that they had been renting previously but had stood empty for 6-7 months.

I am just scrounging for any tax tips from anyone who has a lot of experience with rental income tax really - I'm fine with wear and tear allowance, usual allowable expenses, splitting 'profits' etc but wondered if there were any gems of aditional advice out there!

Always keen to improve my knowledge!!

BTW, she has not submitted a tax return for 2 years - her brother told her he would 'sort out the accounts and tax' for her (???!) and she never understood how...needless to say he has just undergone an HMRC inspection and she is now rather concerned!

T.C.

Don't forget wear and tear allowance is only for furnished lettings. Otherwise is is general revenue expenses on repairs/replacements. Any large expenses such as conservatory would have to be capitalised, as would an original refurbishment project. (I also manage over 30 properties as part of my other job so I see both sides of the equation - it sometimes helps).

Emrhino

Thanks, T. C.

Yes, all sounds good. Don't think there are many other opportunities for relief on property pages. Shame!