BTL expenses – impact of using as residence short-term

[Apn73]

Good evening, I have a flat I was getting ready to let. My accountant allowed me to claim some expenses of readying work (not improvements) on last year’s return. However I am now thinking of living there for a period. What’s the longest that I could live there before HMRC say I’m getting too much benefit from the work I’ve had done & therefore the expenses claimed have to be reversed? Thanks for any advice!

 

[Lisa Thomas]

Have you asked your accountant?

 

[DWS]

Do you let out other properties?
If not then it could be argued that you do not have a rental business and those expenses may not be allowable, as Lisa says have you asked your accountant who would be best placed to answer this.

 

[Daybooks]

Your accountant would be feeling the weight of responsibilities bar for the fact that it is the legislation that determines what is allowed or otherwise.

Unfortunately your question poses too many others so tread carefully and discuss with your accountant your plans.

 

[AndreasC]

You wouldn't be able to make the claim for the initial costs and would have to amend last year's tax return if you decide to live in the property.

Speak to your accountant about it

 

[Apn73]

My old accountant said I could have claimed readying expenses for a different property, if I'd lived there for a shorter time than I did. Hence I'm interested in what the time limit is.

 

[DWS]

My old accountant said I could have claimed readying expenses for a different property, if I'd lived there for a shorter time than I did. Hence I'm interested in what the time limit is.

You did not say if you rent out other properties, I take it you must in order for your accountant to have claimed the pre-rental expenses, as all of your properties income and expenditure would have been added together, also without other rental income there would be nothing to offset the expenses against, just trying to understand why they allowed the claim because if you do not have other properties then the rental business would not commence until the property is let and that is the date that the expenses become allowable.
If you have no intention of renting the property before moving in then these expenses would be disallowed and the previous tax return amended to show this.
Also I did not think a landlord was allowed to live in their BTL property.

 

[WaveJumper]

Also my understanding if you have a BTL property which has a BLT mortgage attached its illegal for landlord to live in property unless purchased outright ....... a quick chat with your solicitor or mortgage company i am sure will confirm