Tax changes for HMOs

According to an article on taxationweb multiple occupancy landlords could be hit by a new change in relation to their classification of communal areas for multiple occupancy dwellings.  This is particulalry likely to impact on student landlords.

The update HMRC's Business Brief 45/10 states that areas such as kitchens and lounges will be now treated as 'dwellings' alongside tenant's private rooms.

The change comes into force on 22 October and has implications for VAT and for expenditure previously eligible for capital allowances.

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