Points Rental/Tax query

[robbrdbry]

Hi all,

I've rented some of my points out via David's for a family in April this year so the stay hasn't happened yet. I'm just wondering, am I supposed to declare the tax from the sale? I've not rented before and want to make sure I do everything correctly and the info on this seems kind of wooly for UK folk renting to US folk.

Cheers!

[Br'er Bear]

I can remember this being discussed before and a search showed up https://www.thedibb.co.uk/forums/sho...pos t14539229
where lov2dibb posted in #6 a link to an HMRC property allowance of £1,000 per individual.
gov.uk/guidance/tax-free...trading-income

So presume when jointly owned you can make up to £2,000 before declaring.

Not sure if an Associate listed on a deeds will have their own £1,000 limit, possibly not. But presume for those who listed their children as joint owners then that could be an allowance of £3,000, £4,000 or more depending on the number of owners on the contract.

Also in post #2 YorkshireT states that his accountant set off his dues when declaring.

Hope that helps!

[robbrdbry]

Cheers, I had a search prior to asking but my search terms were either too broad or too narrow so couldn't find what I needed.

Wil have a read, thankfully we come under the £2k mark but I don't have an accountant or anything like that so I'd have no idea what i'd be doing at best haha.

[Br'er Bear]

HMRC does state, If your annual gross property income is £1,000 or less, from one or more property businesses you will not have to tell HMRC or declare this income on a tax return.

So as you're under £2,000 then there's nothing to report.

Also bear in mind when renting through David's that some renters might receive a 70% deposit before 6th April with the final payment of 30% after.

Those payments are therefore in different tax-years so presume while a rental might produce a £2,800 profit, the first $1,960 is received in one tax year while the final payment of £840 is in the following tax year. Current tax year being 6th April 2021- 5th April 2022.

[robbrdbry]

Originally Posted by Br'er Bear

HMRC does state, If your annual gross property income is £1,000 or less, from one or more property businesses you will not have to tell HMRC or declare this income on a tax return.

So as you're under £2,000 then there's nothing to report.

Also bear in mind when renting through David's that some renters might receive a 70% deposit before 6th April with the final payment of 30% after.

Those payments are therefore in different tax-years so presume while a rental might produce a £2,800 profit, the first $1,960 is received in one tax year while the final payment of £840 is in the following tax year. Current tax year being 6th April 2021- 5th April 2022.

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This is exactly the situation that's happened with us. We're joint owners and the 70% (was £1300 ish) was paid in October '21 and the remainder is coming in late April so happily they're comfortably in two separate years. Thanks very much for the help on this.