Corporation Tax - Property fixed asset?

[DiamondSharp]

Hi - I bought a buy to let through a ltd company last year - I’m just trying to complete a micro entity form online and was hoping for some advice on how to answer the “fixed assets” question please?

The property was bought for £120,000 - I am running at a significant loss currently - so no profit has been earned in the first year.

Do I list the property under the “fixed assets” section and tally up my total expenditure? (If I do this then it might appear that I have made a profit when I haven’t. E.g property was £120,000 - I paid approx £50,000 deposit and stamp duty/legal fees plus an additional approx £10,000 in other expenses such as mortgage fees, property maintenance, council tax etc whilst the rental income has only generated around £5,000 for the year)

Thanks in advance for your help with the above

 

[NicoJ]

The property is a fixed asset, some of the other costs you've listed are also balance sheet items so also won't affect your profit / loss.

The advice you will be given is to appoint an accountant and quite honestly this is the best advice. To be blunt the question you've asked is a basic question and the fact you've asked it indicates you need help.

 

[DWS]

Agree with NicoJ you need to appoint an accountant, hopefully you received advice from one before buying the property and putting it through a Ltd Co, if so go back to them, if not are you sure that doing so was a good idea, in my opinion too many people buy property in a Ltd Co with out taking advice and having no idea on an exit plan when the property is sold.

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[DiamondSharp]

Thanks both for the advice - appreciated

 

[WaveJumper]

Agree with NicoJ you need to appoint an accountant, hopefully you received advice from one before buying the property and putting it through a Ltd Co, if so go back to them, if not are you sure that doing so was a good idea, in my opinion too many people buy property in a Ltd Co with out taking advice and having no idea on an exit plan when the property is sold.

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This is so true and those who come to the forum should defiantly take advice from professionals before jumping in saves a lot of headaches going forward

 

[UK Contractor Accountant]

it's an investment property on the Balance Sheet.

 

[MBE2017]

Make sure you get an accountant who invests in property, or at least specialises in it.
Running it through a LTD company might be right for you, if it is not, it might be better to leave things as they are.

This should have been considered before buying the property ideally.

At the price you mention you might also want to consider the new EPC requirements heading your way, all BTL rental property will need a C rating or above from 2025, although you get another three years to improve the property if you have a tenant in the property. So most terrace properties for instance would need EWI to achieve this rating.

 

[DiamondSharp]

Thanks for the advice