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dooosteveooo
17-09-2009, 08:57 AM
Hi all
As well as being new to this forum, I am also new to the world of renting out property, so will probably ask some very basic (stupid) questions :o
My father had a property, which he has rented out for years. Due to his age he has signed the property over to me. The current tenants are in the process of moving out and I have new tenants moving in next month. The property does need a bit of work doing to it - garden fence replaced, windows replaced as well as some work in the bathroom due to moisture. I will be meeting a trusted builder this weekend to price up the work and hopefully get it all done before the new tenants move in.
Oh, and just to mention, I have always worked PAYE since I left school and therefore have never had any dealings with accountants or the taxman.
My questions are -
Will I be taxed on my fathers 'gift' to me?
Will I be able to claim back tax on any of the work I am carrying out?
Thanks in advance.

TaxationPete
17-09-2009, 09:24 AM
You will not have a tax liability but your father might based on the facts, dates of living there and dates it was a rental property and the value at acquisition and disposal, i.e. open marker value when gifted to you.
You need to buy a good book on BtoL's How to Aviod Property Tax and Buy to Let for Dummies, comes to mind.
http://www.hmrc.gov.uk/manuals/pimmanual/
http://www.hmrc.gov.uk/manuals/pimmanual/PIM2505.htm
Reagrds Peter

dooosteveooo
17-09-2009, 10:43 AM
Cheers Peter.