UK Landlord Forum / Life

Hello forum members,

I'm a newbie landlord and am seeking some help please on what i'm allowed to set against tax. I've read a number of posts and articles but since the rules changed in 2017 it all seems a little confusing.

Okay so...here goes...

I bought and moved into my flat in June 2015. From October 2015 I had a lodger move in. In Feb 2018 I had a new boiler put in (whilst the lodger and I were still living there) which cost £2160. Lodger and I moved out on 31st may 2018. After which  I got things done such as EPC, PAT testing, alarm was fixed, gas safety check, new hob and used an agency to find the tenants.

I understand I can claim all of the above against tax, along with service charges for the block, ground rent and insurance but can I claim the boiler? I'm not sure if having a lodger live there means there was a tenant and therefore I can claim against it, or not as the case may well be.

Advice would be hugely appreciated.

Thanks,
Rebecca

A Lodger is not a Tenant.

You'd probably use the term Tenant if they were a Tenant... but you didn't, you said Lodger. I'm quietly confident you're onto an unsatisfactory answer. By having a Lodger you are actually taking advantage of another tax saving rule - encouraging simplicity - £7,500 (isn't it?) that you're getting in tax free... which is a lot better than paying tax on any rental income then offsetting some expenses.

Here's your cake, have it... would you like to eat it too? 

If I read that right, you previously had a lodger but then you both moved out and you're now letting the property on an assured shorthold basis. I reckon you should be fine setting the agency fees, testing and minor repairs against tax, and the new hob should be fine on the basis that it's not a significant upgrade to what's already there, and probably didn't cost that much anyway.

As regards the boiler, I'm deeply disappointed Hippogriff didn't do the "have your cake and heat it" pun but in all other respects he's right. Even if you did retrospectively manage to upgrade your lodger to a tenant, you'd be worse off for the loss of rent-a-room relief.

It was early, or I was hung-over... or both. Please don't try to verify any of this, by looking at the time-stamp or what-have you... I'll just deny it, no-one knows what timezone I'm really in.

Disappointment is only gonna grow. I miss the puns all too often nowadays.

Erm, thank you both for your replies...and comments. I got my answer...I guess I won't be 'having my cake and heating it'.