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Question

i rented my property from 2003 to 2008 while serving in the army abroad and renting army quarters. Can i claim tax relief on the mortgage interest ?

Submitted: 296 days and 22 hours ago.
Category: UK Tax
Value: $18
Status: CLOSED
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Optional Information

devizes, United Kingdom

Already Tried:
rang hmrc help line and have number to ring back. this may involve thousands of pounds.

Posted by Tony 296 days and 21 hours ago.

Answer

You can deduct the mortgage interest from the rental income along with other relevant expenses such as repairs, letting fees etc when calculating the profit or loss for tax purposes for each tax year of the letting. It sounds like you've not disclosed the income on a tax return for each of the tax years concerned.

295 days and 17 hours ago.

Reply

I have declared my income (rent) on each tax years return, along with the cost of repairs, letting insurancent fees, manageme fees which I deducted from the rent recieved, but have not entered (deducted) the cost of the mortgage ( interest paid on the loan for the property). It appears that you believe this would be acceptable? can I reclaim this cost?, and if, yes, how far back?

Accepted Answer

If the first tax year that you let the property was 2003/04 (6 April 2003 to 5 April 2004) you should make a claim under the error and mistake provisions of the tax rules under Section 33 TMA 1970 as you normally only get one year from 31 January following the end of the tax year to make an amendment to a tax return. Section 33 TMA 1970 gives you longer.

 

I suggest you write a letter to your tax office setting out the revised figures. Make sure you keep a copy of the letter and a note of any telephone conversations you have with the tax office.

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Expert: Tony
Pos. Feedback: 99.6 %
Accepts: 
Answered: 2/1/2009

Tax Preparer

Consultant in Income Tax, Capital Gains Tax, Corporation Tax, Inheritance Tax

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