UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
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 ****
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