Multi – Let / Houses in Multiple
Occupation (HMOs)

HMRC Brief 45/10 issued on the 22nd October 2010 effectively stopped the majority of landlords/investors from making a worth while claim on their multi lets.

Pre 22nd October 2010 landlords were able to claim on all the communal areas of a dwelling excluding the actual bedrooms (classed as residential) themselves which would typically result in identified Capital Allowances of approximately 20% – 25% of the original purchase price, position on resale.

Post Brief 45/10

Has dramatically, reduced the client viability in claiming on the above properties.

Essentially under the new Brief you can no longer claim on the communal areas that support the bedrooms elements of the building i.e. kitchens, bathrooms, lounge & dining rooms. Previously a claim would off produced identified capital allowances in the region of 20-25% of the purchase price however under the new regime we expect this to be in the region of 7 to 12%!

However we can offer the following services:

For property purchases between 29th December 2008 and up to 22nd October 2010 we can make a multi let / HMO claim on the Pre Brief 45/10 basis whereby we can claim on everything except the actual bedrooms resulting in a claim against the original purchase price of approximately 20-25%.

Pre 29th December 2008 purchases .We can still claim if the portfolio has a purchase price circa £1,000,000 + but the free report if under £25,000 per individual property will not be applicable and the individual properties of the portfolio have to be in the same vicinity as each other and each property within the portfolio must have a purchase price of at least £100,000. As in accordance with Brief 45/10 we calculate the expected allowances will be in the region of between 7 -12% of the purchase price.