UK Property Depreciation - How to get Valuations for Tax Return?

[TokyoSurvivor]

This is a question regarding UK property.

How are people going about getting valuations to help calculate depreciation for the Japanese Income Tax Return?
Looking at how this is calculated, it's not so easy using standard UK information.

- Valuation of Land
- Valuation of Building

Also the structure of the house matters (wooden, concrete or steel frame).

How are people getting over this hurdle? What documents /websites are prople using (for example Land Registry or Zoopla)?

Any tips on this greatly appreciated!

[Deep Blue]

The friends I know did this simply made it up. They never seemed to be challenged. One guy claimed his Edinbough town hall was made of wood and virtually all the value was in the building, not the land.....

This was before the law was changed so depreciation couldn't be offset against salary income. I guess now depreciation can only be used to reduce taxes on rental income they have even less incentive to check?

[Tkydon]

Now, you can only use depreciation to offset the tax on the Rental Income.
You can no longer use depreciation on overseas properties to offset the tax on any other income, since a couple of years ago.

[TokyoSurvivor]

Against the UK rental income is fair enough.

Also getting my head around all other expenses that can be deducted from rental income on the tax return.
Anyone know of a useful list?

[Tkydon]

Against the UK rental income is fair enough.

Also getting my head around all other expenses that can be deducted from rental income on the tax return.
Anyone know of a useful list?

You would need to request permission to file a Blue Return for which you need to provide full Double-Entry Book-Keeping Accounts.
You should consult a Qualified Professional Zeirishi, at least for the first year or two to find out all the details of how to present the accounts.
It is more complex than the information typically provided by a UK Rental Agent.

If you only file a White Return, the deductions and expenses are extremely limited.

[Wales4rugbyWC23]

Against the UK rental income is fair enough.

Also getting my head around all other expenses that can be deducted from rental income on the tax return.
Anyone know of a useful list?

Stamp duty, mortgage interest, letting fees, ground rent, management fees, solicitors fees, insurance, extension of leasehold fees. I am sure there are more The list is quite long..... Longer than HMRC's list...... Apart from the depreciation, mortgage interest is quite significant.

[TokyoSurvivor]

Against the UK rental income is fair enough.

Also getting my head around all other expenses that can be deducted from rental income on the tax return.
Anyone know of a useful list?

You would need to request permission to file a Blue Return for which you need to provide full Double-Entry Book-Keeping Accounts.
You should consult a Qualified Professional Zeirishi, at least for the first year or two to find out all the details of how to present the accounts.
It is more complex than the information typically provided by a UK Rental Agent.

If you only file a White Return, the deductions and expenses are extremely limited.

ChatGPT lists the following is ok for a white return

- Interest Expenses:
Mortgage or loan interest on the rental property.

- Repairs and Maintenance:
Costs incurred for routine repairs and upkeep of the property.

- Management Fees:
Fees paid to property managers or agents.

- Depreciation:
Although you must calculate depreciation in a simplified manner without full double-entry records, you can still claim depreciation on the property.

- Property Taxes and Public Dues:
Local property taxes and other related public charges.

- Insurance Premiums:
Costs for property and liability insurance.

- Utilities and Other Costs:
If you, as the owner, cover utilities or similar expenses, these can be included as long as they relate to the rental activity.

- Other Directly Related Expenses:
Any other costs that are essential for generating your rental income, provided you have the proper documentation (invoices, receipts, etc.).


Seems that covers what I need. Need to get more info on the "Other Directly Related Expenses" part.

[RetireJapan]

ChatGPT lists the following is ok for a white return

AI content is not allowed on this forum. Please don't post any here again.

[Tkydon]

- Depreciation:
Although you must calculate depreciation in a simplified manner without full double-entry records, you can still claim depreciation on the property.

You can only claim depreciation (and the other expenses) against the Rental Income from the property. Depreciation Losses on Overseas properties can no longer be carried over to offset other forms of income since a couple of years ago.

[Deep Blue]

- Depreciation:
Although you must calculate depreciation in a simplified manner without full double-entry records, you can still claim depreciation on the property.

You can only claim depreciation (and the other expenses) against the Rental Income from the property. Depreciation Losses on Overseas properties can no longer be carried over to offset other forms of income since a couple of years ago.

This was already stated in post 2 and post 3.