UK Tax

UK tax questions? Ask a UK tax advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

UK Tax Queries Background -- we are recently retired and…

UK Tax Queries Background --...

UK Tax Queries Background -- we are recently retired and currently living in Malaysia. We have worked overseas for many years and we are non-resident for UK tax purposes. We have property in UK which is let out (we are non-resident landlords) and we have recently started to receive UK Government Pension. These are our only incomes. Questions: 1. We had a rogue letting agent in tax year 2016-17 who allowed unauthorised lettings. These resulted in physical damage to furniture and carpets in our apartment. We cancelled the agent agreement in March 2017 (tax year 2016-17). We purchased replacements for the damaged items in May 2017 (tax year 2017-18). Can the replacement costs be charged against tax year 2016-17 when the damage physically happened and when we cancelled the agent agreement, or do they have to be charged in the tax year 2017-18 when the replacement items were purchased? 2. We incurred un-planned travelling costs to visit the UK from Malaysia to sort out the mess caused by the rogue agent and to bring the apartment up to a lettable state again, including purchasing replacement items. Can these travel costs be claimed as expenses against rental income? 3. During periods between lets when the property is not rented out – even though it was available for rent and being advertised with agents - can expenses such as council tax which are paid by us during the non-rented period be claimed against tax? 4. My wife received her first UK Government pension in tax year 2016-17. This consisted of a lump sum for years 2010 to 2016 and then regular pension payments for 2017. Is the lump sum taxable and does it have to be included in tax year 2016-17 or can it be spread across tax years? Note: the total pension amount is significantly more than the personal allowance due to the lump sum. 5. Regarding the pension lump sum - if it is taxable - my wife did not pay any tax in the previous year 2015-16. Will she be charged at 0% or the basic rate of 20% in tax year 2016-17? Look forward to a reply. Thanks and regards Brian ****

Show More
Show Less
Ask Your Own UK Tax Question
Answered in 7 hours by:
10/16/2017
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,217
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Verified

Hi, Sam here, one of the UK Tax Experts here on Just Answer, Thank you for your question - I shall reply shortly.

Ask Your Own UK Tax Question
Customer reply replied 7 months ago

Hello Sam, I just received an email asking me to increase the answer price to $100 due to the work required in answering. This is ok - but the link provided does not work. Are you able to help with this? Thanks and regards Brian ****

HI

This is not something I am involve din but I have sent a message to the category moderators to see if they can assist

Thanks

Sam

Ask Your Own UK Tax Question
Customer reply replied 7 months ago
Hi Sam,Just Answer support says the question price has been increased manually to $100.Are you able to see this and are you now able to answer the queries?
Thanks and regards
Brian Stubbs

HI Brian

Yes and lets get on with your questions

1. We had a rogue letting agent in tax year 2016-17 who allowed unauthorised lettings. These resulted in physical damage to furniture and carpets in our apartment. We cancelled the agent agreement in March 2017 (tax year 2016-17). We purchased replacements for the damaged items in May 2017 (tax year 2017-18). Can the replacement costs be charged against tax year 2016-17 when the damage physically happened and when we cancelled the agent agreement, or do they have to be charged in the tax year 2017-18 when the replacement items were purchased?

The costs for furniture if allowable would be claimed in 2017/2018 when you paid for the replacements and can claim the like for like cost - due to the cessation of the wear and tear claim from 2015/2016 - however replacement carpets although allowable in 2016/2017 are only a valid claim IF you had a tenant in situ at the time - which would seem unlikely as you state that this helped you get the property back into the rent able position you wanted - so these are unlikely to be a valid claim

2. We incurred un-planned travelling costs to visit the UK from Malaysia to sort out the mess caused by the rogue agent and to bring the apartment up to a lettable state again, including purchasing replacement items. Can these travel costs be claimed as expenses against rental income?

Did you come to the UK solely to take care of this matter , focus only on this then return to Malaysia or also visit elsewhere in the UK - where did you stay ? I asked this in case any of your trip formed any personal/leisure reasons - if so then you would need to apportion the costs to come to the UK accordingly.

3. During periods between lets when the property is not rented out – even though it was available for rent and being advertised with agents - can expenses such as council tax which are paid by us during the non-rented period be claimed against tax?

No - you have to be in a position of receiving rent (or due rent with an existing rental agreement ) for those expenses to be allowable, so during a non rent period - these are not allowable costs

4. My wife received her first UK Government pension in tax year 2016-17. This consisted of a lump sum for years 2010 to 2016 and then regular pension payments for 2017. Is the lump sum taxable and does it have to be included in tax year 2016-17 or can it be spread across tax years? Note: the total pension amount is significantly more than the personal allowance due to the lump sum.

I am afraid the tax is due on the year that the lump sum is paid - at that highest rate of tax arising for that year - it cannot be spread across tax years as paid as a lump sum in the one tax year - the only way around this would be to NOT take the lump sum and ask for a monthly increase in the basic state pension payments which would have been an option offered

5. Regarding the pension lump sum - if it is taxable - my wife did not pay any tax in the previous year 2015-16. Will she be charged at 0% or the basic rate of 20% in tax year 2016-17?

Yes - tax will be due if tax arises in 2016/2017 (and your wife is a taxpayer) it will be at the rate that her tax position sits for 2016/2017 which you seem to suggest is 20%

Let me know if I can assist further

Thanks

Sam

Ask Your Own UK Tax Question
Customer reply replied 7 months ago
Hi Sam - thanks for your answers. Queries 3, 4 and 5 are fully answered - thanks.
Query #1 - Some further clarification details on this one which will give you a better overall picture – the rogue agent claimed to have a signed tenancy agreement for a one year lease with a footballer from Newcastle United. But he never signed or finalised the lease. Instead of telling us, the agent let the property on AirBNB for party and general lets (including stag and hen parties at weekends) without our knowledge or approval. Hundreds of people stayed there instead of a single family. Furniture, mattresses, divan, rugs and soft furnishings were wrecked – vomit and drink stains, dirty marks, torn furniture etc. It took a cleaning agency 2 full days just to clean up the mess. We had to throw away furniture, mattresses, one bed, rugs and all soft furnishings – they were disgusting. We have photos to back up their condition.
The agent maintained the façade of a footballer tenant and even claimed the footballer had requested 2 extensions of the lease, which we agreed to, not knowing the true story. These were all fake agreements. We found out about the unauthorized lettings when my wife saw our apartment being advertised on AirBNB.
So the bot***** *****ne is that we had to change the damaged items and it is these items that we plan to claim. We understand the “like for like” replacement proviso.
You mention carpets in your above reply – sorry for poor choice or words – there are no carpets but there were 2 rugs. One had disappeared altogether and the other was filthy and could not be used. There was also damage to the laminate flooring, caused by stiletto heels, which will need to be replaced in due course.
Given these clarification details – we believe that the “like for like” replacement furniture, rugs, mattresses etc should be claimable. Would you agree?
(Please note that it is very unlikely that we will get any compensation from the rogue agent for the damaged items.)
Customer reply replied 7 months ago
Query #2 - We traveled to UK in May 2017 trip solely to take care of the apartment problem. We stayed at my brother’s house – he lives nearby – our apartment was un-livable. It took us 2 weeks to resolve everything and we then returned directly back to Malaysia. We have numerous invoices for lots of major and minor replacement purchases to back up our activities while we were there.
What would we need to convince HMRC of the objective of the trip and be able to claim the travel costs?Query #6 - NEW - One final query if you don’t mind which I had forgotten to include – we rented a storage locker when we started to let the apartment several years ago. We have not previously claimed the costs because we were below the tax threshold in previous years.
The locker is only needed because we let out the property. It contains items that are not required by the tenants and some minor personal effects.
Is the cost of the locker claimable against rental income?Look forward to your further advice.
Thanks and regards
Brian

Hi Brian

Thanks for your response

Re 1) i can appreciate your position but this is a matter for the courts and not a matter for which the tax office can allow you out of pocket costs to get the property back to a let able condition (i.e furnished) as you could have chosen to go down the unfurnished let route- so I would advsie you seek legal recourse for these additional costs

Unless repairs or maintenance takes place when you have a tenant in situ then it is never allowable I am afraid - but as rungs then you could get like for like replacement as with the furniture mattresses and these rugs

2) I would say you claim 75% of the travel costs as clearly you came to the UK as a trigger to rectify the property position but as you stayed with family - its fair to say there was in turn a duel purpose, so a &% claim of travel costs would be deemed reasonable by HMRC

6)NO - this is a personal expense for you to retain items that you wish to keep so not an allowable cost

I am about to head out for a client visit so will not be back until later, but assure you, should you have any further queries, I will respond on my return (near to 7pm)

Thanks

Sam

Ask Your Own UK Tax Question
Customer reply replied 7 months ago
Hi Sam - thanks for reply.Just need a little clarification on Query #1 (maybe wording is confusing us) where you say
" Unless repairs or maintenance takes place when you have a tenant in situ then it is never allowable I am afraid - but as rungs then you could get like for like replacement as with the furniture mattresses and these rugs ".-- Should "rungs" be "rugs"?
-- Are we right in understanding from your answer that repairs & maintenance needs to be done when a tenant is in situ to be able to claim - whereas - like for like replacement of items can be done without a tenant in situ?
-- Hence - can we try to claim the replacement furniture, mattresses, laminate flooring etc as like for like replacements because they were already in place and have become damaged due to misuse by tenantsThanks
Brian

HI Brian

Yes apologies - rungs should say rugs and yes you have it spot on that repairs and maintenance to be an allowable expense against rental income have to take place when you have a tenant in situ - if in between tenants then this is solely your cost to bear. Whereas replacement of items like furniture etc you can claim a like for like amount any time (whether before, during or after a tenant is in situ.

You therefore can claim the furniture and rugs and mattresses but not the laminate flooring as not a capital item

Thanks

Sam

Ask Your Own UK Tax Question
Customer reply replied 7 months ago
Hi Sam,
Thanks for the clarification.
Query #1 - One last question and we are done - for the damaged laminate flooring - if it is replaced while a tenant is in situ (we now have a tenant in place), can it then be claimed as a maintenance/repair cost?
Thanks
Brian

Hi Brian

Then yes it can be - as most definitely an allowable repair/maintenance to the property as you receiving rents at the time

Let me know if I can assist further or if you have all that you need, it would b appreciated if you could rate me for the level of service I have provided or click accept

And if in the future you need any more assistance then do come back to Just Answer

Thanks and have a lovely day

Sam

Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,217
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax
Verified
Sam and 87 other UK Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 7 months ago
Thanks Sam - all questions answered.
Many thanks for your help with these - very happy with your service.
Will close down the query now.
Have a great day yourself.
Best regards
Brian
Was this answer helpful?
Ask Sam Your Own Question
Sam
Sam
Sam, Accountant
Category: UK Tax
Satisfied Customers: 14,217
14,217 Satisfied Customers
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

Sam is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

14,217 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

925 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

148 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
My client (I am bookkeeper) just received CT61 form. She
Hello My client (I am bookkeeper) just received CT61 form. She registered her ltd just month ago. So, please, can you advice, why she received it and what to do with it? Thank you… read more
Sam
Sam
Accountant
14,217 satisfied customers
Client has purchased a Victorian office block and turned it
client has purchased a Victorian office block and turned it into flats. want to know if he can claim any vat back on goods and services used in the process. he intends to keep some and sell some of th… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
UK Tax - Company Car tax implications I have been asked by a
UK Tax - Company Car tax implicationsI have been asked by a client about whether or not it is better to lease a car through the company or lease it personally and charge mileage. I want to ensure that… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
My parents and I jointly own a property and all three of us
My parents and I jointly own a property and all three of us are on the land registry.The only reason they were added to the property was to facilitate the mortgage as my salary wasnt enough. My parent… read more
Sam
Sam
Accountant
14,217 satisfied customers
If my wife who does earn any moneytransfers her tax
If my wife who does earn any moneytransfers her tax allowence to me, will shew lose her pension credits … read more
Sam
Sam
Accountant
14,217 satisfied customers
I was living in the Uk for two years and I'm from Canada. I
Hi there, I was living in the Uk for two years and I'm from Canada. I just received an email from a former employer that my payments are now being place under a tax avoidance scheme and that I will ha… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
UK TAX QUESTION I operate a number of small USA based online
UK TAX QUESTIONI operate a number of small USA based online businesses that generate recurring income commission paid to me in the UK.Would it be legal for me to transfer one of the business (its just… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
I pay a significant amount of tax in the UK ( I was born and
I pay a significant amount of tax in the UK ( I was born and still live here ) and I am also about to be hit by HMRC's Loan Charge against contractors. My liability on the loan charge is 6 figures. An… read more
Sam
Sam
Accountant
14,217 satisfied customers
I was wondering if i can transfer shares to my spouce i am a
I was wondering if i can transfer shares to my spouce i am a UK tax resident, but my wife is a Dutch tax resident … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
Could you advice, please, what is better to do from the
HelloCould you advice, please, what is better to do from the accounting point of view ?: -to buy van on leasing - to buy van from cash moneyThank you… read more
Sam
Sam
Accountant
14,217 satisfied customers
My client (I am bookkeeper) has Ltd - turnover over £150
HelloMy client (I am bookkeeper) has Ltd - turnover over £150 000. She is not very happy to pay big amount of VAT on it. Would that be any advice to her how to lower/compensate this huge bill to HMRC?… read more
Sam
Sam
Accountant
14,217 satisfied customers
Does travel from home to work office count as business
HelloDoes travel from home to work office count as business mileage expense - for sole trader? (this is for teacher who travels from his home to his rented office every morning). Thank you… read more
Sam
Sam
Accountant
14,217 satisfied customers
We are preparing working papers for our UK tax returns.
Hello there,We are preparing working papers for our UK tax returns. (We're Brits based in the UK for tax purposes, but we spend approaching 6 months per year in the US.)We have UK income and US income… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
I wonder if you would be able to advise. One of my clients
I wonder if you would be able to advise. One of my clients (I am bookkeeper) is paying too much VAT. Her accountant is useless (but thats another story)... I wonder if flat VAT would not be better for… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
I HAVE A QUESTION OF HOW TO GET "HMRC" OF "NONE RESIDENCETAX
I HAVE A QUESTION OF HOW TO GET "HMRC" OF "NONE RESIDENCETAX CLEARANCE" AT ENGLAND FOR FUND OF MINE. … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question re. letting agents and commercial property
Hi. I have a question re. letting agents and commercial property and VAT … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
It s my first time filling the Micor entity sheet on the
It s my first time filling the Micor entity sheet on the HMRC site and I'm at a loss from the first question. can you help? … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
Have just received notification of my second works
have just received notification of my second works pension,which I have been receiving for 20 years and find a tax code of K90 and a deduction of £70.40. I have never paid tax on this pension before, … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
925 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x