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UK Property (SA900)

This screen is accessed via the data input tab within the tax return. Use this section for entering income from UK property and income from UK and EEA Furnished Holiday Lets.

When entering property income you can choose to enter each property into a separate section, or you can place all properties of a particular type into the same section. Taxfiler will aggregate the results for the tax return form.

Income from UK Land and Property

  • ‘Is this a furnished holiday let?‘ Tick if the property is a furnished holiday let. Further information is available in HMRC Helpsheet 253 Furnished holiday lettings.
  • ‘Is this a joint letting?’ Tick the box if the property is let jointly.

Income

  • ‘Rents and other income from property‘ Enter the tax payer’s share of income from the property or properties included. For non-resident landlords this should be the gross income before deduction of tax.
  • ‘Tax taken off (non-resident landlords)’ Enter the tax payer’s share of any tax taken off the income.
  • ‘Premiums for the grant of a lease‘ Enter the tax payer’s share of the amount taxable to income for premiums. The premium chargeable is equal to Premium paid x (50 – years) ÷ 50, where years is the number of complete 12-month periods of the lease ignoring the first 12 months.
  • ‘Reverse premiums and inducements’ Enter the tax payer’s share of any reverse premiums.

Finance costs on residential property

How is relief given for residential finance costs?  

From 2020/21 tax year relief for finance costs is no longer available as a deductible expense against rental income. Instead, a tax reduction @ 20% is given to reduce the income tax liability. 

The tax reduction is the lower of: 

  • Property profit after deducting losses brought forward and 
  • Total residential finance costs including any unused costs brought forward. 

Any finance costs unrelieved in this way is carried forward to subsequent tax years. 

  • ‘Interest and other finance costs on residential property’ enter the amount of finance costs paid during the year. From 2020/21 tax year interest paid is not an allowable expense against rental income received. Relief on the interest paid will be given as a 20% tax reducer against the calculated tax liability. 

Expenses

  • ‘Rent, rates, insurance, ground rents etc‘ Enter the tax payer’s share of rental expenses etc.
  • ‘Repairs, maintenance and renewals‘ Enter the tax payer’s share of repairs and maintenance.
  • ‘Allowable finance costs on residential property‘ This is a calculated percentage of the value entered in ‘Interest and other finance costs on residential property’ above
  • ‘Other finance charges, including interest‘ Enter the tax payer’s share other finance charges etc.
  • ‘Legal and professional costs’ Enter the tax payer’s share of fees etc.
  • ‘Costs of services provided, including wages’ Enter the tax payer’s share of wage and service costs etc.
  • ‘Other allowable expenses‘ Enter the tax payer’s share of any other expenses.
  • ‘Total expenses‘ Taxfiler shows a tally of expenses added

Adjustments and allowances

  • ‘Net profit/ (loss)‘
  • ‘Private use adjustment‘ Enter any amount disallowed for private use.
  • ‘Balancing charges‘ Enter the tax payer’s share of any balancing charges.
  • ‘Electric Charge Point Allowance’ Enter the amount of allowances claimed on installing an electric charge point.  (added from 2022)
  • ‘Structures And Buildings Allowance’ (added from 2022)
  • ‘Freeport Structures And Buildings allowance’ Enter the amount of annual allowance on expenditure in respect of buildings in a Freeport Tax site. Allowances apply from the date the site was designated a Freeport tax site. (added from 2022)  
  • ‘Zero-emission car allowances’ Enter the amount of allowances arising in respect of the purchase of a car with zero emissions.(added from 2022)
  • ‘All other Capital allowances‘ Enter the tax payer’s share of any other writing down or balancing allowances
  • ‘Includes ‘environmentally friendly’ expenditure?’ (Applies up to and including 2020/21)  
  • ‘Cost of replacing domestic items’

Profit and Losses

  • ‘Adjusted profit / (loss)’
  • ‘Loss brought forward’ Enter any unused losses brought forward from the previous year.
  • ‘Loss brought forward used against profits’ Taxfiler will allocate the maximum applicable loss to the profits for the year.
  • ‘Loss used against other income‘
  • ‘Taxable profit/ (loss) for the year‘ Shows the taxable profit for the year, after taking into account losses brought forward.
  • ‘Loss to carry forward‘ The losses to carry forward will be shown.