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  • Tax

    Student Let: I pay Internet & TV for them

    Just wondered if anyone knows whether I can include the cost of the Internet and the TV licence as a Revenue Expense? (we pay these for the students)

    Many thanks!

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    We do likewise and claim the cost against revenue and it is almost a zero sum gain in that the increase in cost is seen as enhancing income, which it does. We have found it is disproportionately popular and we will be doing it to other properties.

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    As a Property Tax specialist I can confirm that you can claim these costs as a tax deduction.

    Regards Nigel

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    Many thanks for both replies, really appreciated!

    Nigel, may I ask one more question?

    Our property is a 50/50 ownership split between myself and my wife.

    I understand that we therefore each declare 50% of the rental income.

    Does it have to follow that the expenses have to be split in the same way, or can I utilise 100% of the expenses to offset my half of the revenue?

    Thanks again!

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    The expenses must follow the rental income in being shared 50:50.  However you can change the split of income and expenses using a Deed of trust and notifying HMRC of the change on Form 17.  The only point you need to watch with the Deed of Trust is that whilst there is no Capital Gains Tax on such a change there can be an SDLT charge where the amount of mortgage being moved is £40,000 or more.

    Regards

    Nigel

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    Don't you actually have to move the mortgage, or at least mention the mortgage (or expenses generally) in the declaration of trust underlying the Form 17?

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    Just a general comment - imho you should have a bespoke broadband landlord solution like the one offered by our partner, Landlord Broadband.

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