During the pandemic, we have seen an increase in holiday
lets. With the restrictions to go abroad, a lot of people have been having a
‘Staycation’ exploring the wonderful options we have in the UK.
If you have just started out renting homes or holiday lets,
there are a lot of rules for these. HMRC are very strict when it comes to
rentals. Replacing items need to be based on a like for like, is the property
being improved, all these things need to be taken into consideration
With self-assessments, we are seeing a lot of husband and
wife ownership of property currently that don’t realise that both parties need
to complete a self-assessment. If rent is being received or if a property
has been sold it all has to be declared regardless of your other income.
If both parties are named on the land registry, you both
need to complete a self-assessment return. Unless you have seen a solicitor to
change your set up with land registry, any property with joint names is classed
as 50:50 ownership. Even if one person
has the most interest in the property, all named people on the land registry
will have to send a return to HMRC.
It is important you read up the rules on taking income from
property, whether it is long term rental or holiday let ownership. The number
of people we see not declaring income and then having the shock of HMRC writing
to them asking for back dated returns is increasing.
HMRC do have the full facility to check land registry registers
and transfers of land ownership. Backdating these returns can be costly for the
owner and cause a lot of unnecessary stress.
We are here if you need to query anything regarding your
property ownership.
