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Service charges and major works

16/01/2019 14:29:44
I rent out a flat I inherited which, for the tax year 2017-2018, has both annual service charges and ongoing major works charges for repairs/refurbishment done to the entire block. Both these will continue into the next tax year too. I tried to enter these figures on my online tax return but had a warning flash up telling me that the figure was too high. (The major works figure alone is just short of £2000)

My rental income wont put me into a tax bracket irrespective of this. Can I/should I claim the annual service and major work charges on the form anyway. What do I do if the warning flashes up again?

Could you remind me of where each figure should be claimed if it is permissible? Perhaps I got it wrong?

Many thanks.
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Re:Service charges and major works

16/01/2019 14:38:13
Hi,

Thanks for your question.

The message you received was as you suggest simply a warning advising that the figure seems high in relation to the income for the year.

As long as you know the figure is correct then it does not stop you carrying on with the rest of the form.

The only point I would stress here is that you have mentioned major works. If these major works fall under capital expenditure to the building and are not simply repairs to the building putting it back to a like for like basis, then they may not be allowable.

Hope this helps.
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Service charges and major works

16/01/2019 14:46:56
Thank-you for that, I shall try and clarify this with the managing agents. Could you possibly tell me where the two figures for the annual service charge and major works would go on the form? 'Property repairs and maintenance' for the major works?
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Re:Service charges and major works

16/01/2019 15:19:36
Hi,

The annual service charge would go under Rent, rates, insurance, ground rates etc. The major works where these are allowable would go under property repairs and maintenance.

I hope this helps.