hTTi

Ok, after many years of only just breaking even with my rental house in the UK (or not), this year the tenant has been paying his rent every month (that's a first!) and my Premium Bonds won a 5000 quid prize. (My intention was to cash them in and buy them for Paps instead, but I just didn't crack it off before they laid unexpected golden eggs...they are now gone)

This brings me way over the limit for being Familienversichert through Paps' KK (for which he pays through the nose). Unless the tenant defaults for the rest of the year, but the agent is unlikely to buy into that plan

So my question is whether I can get some stuff done on the house in the UK to offset the income from the premium bonds, or whether that's not going to work? It has a horrible mould problem in a wardrobe which I have been trying to suggest needs fixed, or I can make the fence higher or put some new windows in - many projects are possible.

My slight understanding from another thread is that tax-wise, you can't necessarily offset one thing against another, but for the KK? I think it's total income suggesting that a nice loss on the house would cancel out the Bond gold.

kiplette wrote: ↑Mon Jul 29, 2024 6:32 pm So my question is whether I can get some stuff done on the house in the UK to offset the income from the premium bonds, or whether that's not going to work? It has a horrible mould problem in a wardrobe which I have been trying to suggest needs fixed, or I can make the fence higher or put some new windows in - many projects are possible.

My slight understanding from another thread is that tax-wise, you can't necessarily offset one thing against another, but for the KK? I think it's total income suggesting that a nice loss on the house would cancel out the Bond gold.

Actually for repairs of rental object, the default is that you claim the entire cost immediately, i.e. all you spent that year on the property would lower your rental profit.
But most people prefer to spread the cost for 2 to 5 years, as is permitted by § 82b (1) Satz 1 EStDV: https://www.gesetze-im-internet.de/estd ... __82b.html

• (1) 1Der Steuerpflichtige kann größere Aufwendungen für die Erhaltung von Gebäuden, die im Zeitpunkt der Leistung des Erhaltungsaufwands nicht zu einem Betriebsvermögen gehören und überwiegend Wohnzwecken dienen, abweichend von § 11 Abs. 2 des Gesetzes auf zwei bis fünf Jahre gleichmäßig verteilen.

• (1) 1The taxpayer may spread major expenses for the maintenance of buildings which are not part of business assets at the time the maintenance expense is incurred and which are predominantly used for residential purposes over two to five years in derogation of Section 11 (2) of the Act.

*************************************************************************************************

The only exception would be if you spend more than 15% of the purchase price within the first 3 years after the purchase date renovating it.
In that case, what you spent, gets added to the cost of the house and gets depreciated over 50 years (over 40 years if the house is from 1924 or earlier), this is called "anschaffungsnahe Herstellungskosten": https://www.haufe.de/recht/deutsches-an ... 48786.html

But this doesn't apply to you, you have already owned the property more than 3 years, so spend away

That's great, thank you, Panda.

kiplette wrote: ↑Wed Jul 31, 2024 11:06 am That's great, thank you, Panda.

Congratulations on your win! I’m still on £25 for this year. I also need to spend a bit extra this year on my UK rental lest I tip over the KK limit. It’s so borderline. Finding an exterior decorator able to paint between UK rain is quite difficult.

What energy efficiency is your property? If I remember correctly, there was mention of the minimum rental limit being changed from E to C. On hold now I think though a possible in between measure being E to D. Unless you’re already at C, it might definitely be worth getting the windows changed or if they are in bad condition. Mine were and I spent £5k a few years ago on 10 smallish windows.

Here’s a basic Google….
https://www.hose-rhodes-dickson.co.uk/d ... ent-homes/

Anything else energy efficiency related might be worth considering. Maybe ask your agent if there’s anything else mandatory on the horizon for landlords.

Re existing mould….I’d say definitely get that fixed. Could spell awful problems if your tenant gets ill.

Thanks for that link, emkay. I have already asked the agent for her thoughts, hopefully if anything is coming up for landlords, she'll factor that in.

I think from what you say, mould first, then windows.

Have you had any kind of energy survey done on your property? It's free first go here, but I've no idea about that in the UK. Maybe another question for the agent.

kiplette wrote: ↑Thu Aug 01, 2024 6:10 pm Thanks for that link, emkay. I have already asked the agent for her thoughts, hopefully if anything is coming up for landlords, she'll factor that in.

I think from what you say, mould first, then windows.

Have you had any kind of energy survey done on your property? It's free first go here, but I've no idea about that in the UK. Maybe another question for the agent.

I believe that the EPC is valid for 10 years. The agent last charged me around £100, carried out by an independent surveyor. The report stated various measures to improve energy efficiency. Even simple things like energy efficient light fittings/bulbs.

OK, I went with windows - tried to get decent German ones fitted - the fitter refused and said they were far too awesome for our crappy ex-council house so he fitted some average ones

Put that bill into Elster and have come out with a lovely minus income certificate for the GKK so the plan was overall successful ദ്ദി・ᴗ・)

@kiplette. That’s good news kiplette. I’m just having new front and back doors installed that takes me under the KK limit this year. Next year, it’s likely going to be unavoidable!

Just to mention….as far as I’ve learned and hopefully understood correctly, for DE tax (therefore KK too) matters, you can split some expenditure over 2-5 years. Such as your windows and most other costs other than servicing (gas etc). Ie, if your windows cost 10k and you only needed 5k to be under KK limit, you can split equally over 2 years. 5 years max generally. Needs to be equal amounts per year as far as I know?

From what I’ve heard from energy advisors here and landlords in the UK, best quality windows can be be detrimental as likely to cause mould in 1+ years if the build quality/insulation isn’t top too.

I still marvel at your premium bonds good fortune. Kiddo and I get excited every month. Happy with an occasional £25 so far . Still trying to work out how she can get her outstanding wins without a Uk bank account…..

Emkay wrote: ↑Mon Sep 15, 2025 2:45 pm Kiddo and I get excited every month. Happy with an occasional £25 so far . Still trying to work out how she can get her outstanding wins without a Uk bank account…..

Have you looked into a Wise account (used to be transfer wise) or Revolut, for some of them you do not need to be a UK resident but you have a UK sort cocode and bank account number which is all National Savings & Investments need I believe.

I can't find any information online about attaching a Wise or Revolut account to a NSANDI account - my suspicion is that you can't, but if someone with better google-fu can find that out, it would be helpful and not only for mini-emkay

@emkay - can your kid open an HSBC account like you did? That would certainly be successful with NSANDI.

Kerfuffle wrote: ↑Mon Sep 15, 2025 4:31 pm

Emkay wrote: ↑Mon Sep 15, 2025 2:45 pm Kiddo and I get excited every month. Happy with an occasional £25 so far . Still trying to work out how she can get her outstanding wins without a Uk bank account…..

Have you looked into a Wise account (used to be transfer wise) or Revolut, for some of them you do not need to be a UK resident but you have a UK sort cocode and bank account number which is all National Savings & Investments need I believe.

Thank you. Interesting….i think that the account holder needs to be the PB holder? Ive not used Wise for a while. Isn’t the UK account theirs? Ive asked if my daughter can pay into my UK HSBC account. No! That was a couple of years ago so I’ll check again just in case.

kiplette wrote: ↑Mon Sep 15, 2025 7:14 pm I can't find any information online about attaching a Wise or Revolut account to a NSANDI account - my suspicion is that you can't, but if someone with better google-fu can find that out, it would be helpful and not only for mini-emkay

@emkay - can your kid open an HSBC account like you did? That would certainly be successful with NSANDI.

Thanks ….When shes home again, we’ll look into it. If I remember correctly, when I opened my UK HSBC account, I needed some proof of UK ‘stuff’. My UK tax return sufficed. She doesn’t have anything like that. I’ll have a look at it again as rules have changed a bit.

[/quote]Thank you. Interesting….i think that the account holder needs to be the PB holder? Ive not used Wise for a while. Isn’t the UK account theirs? Ive asked if my daughter can pay into my UK HSBC account. No! That was a couple of years ago so I’ll check again just in case.
[/quote]

If your daughter is the preium bond holder than she needs to have her own UK bank account; if she is not a resident than Revolut and Wise should work for her, sorry if I did not phrase that clearly before. Most UK banks will not allow her to open her own account unless she is resident, that's why I cast the net a bit wider.

Emkay wrote: ↑Mon Sep 15, 2025 2:45 pm Just to mention….as far as I’ve learned and hopefully understood correctly, for DE tax (therefore KK too) matters, you can split some expenditure over 2-5 years. Such as your windows and most other costs other than servicing (gas etc). Ie, if your windows cost 10k and you only needed 5k to be under KK limit, you can split equally over 2 years. 5 years max generally. Needs to be equal amounts per year as far as I know?

Yes, since it says "gleichmäßig verteilen", i.e. "distribute evenly" in § 82b (1) Satz 1 EStDV, for details please see further up in this thread: viewtopic.php?p=4162&hilit=Estdv#p4162

Kerfuffle wrote: ↑Mon Sep 15, 2025 8:15 pm
If your daughter is the premium bond holder than she needs to have her own UK bank account; if she is not a resident than Revolut and Wise should work for her, sorry if I did not phrase that clearly before. Most UK banks will not allow her to open her own account unless she is resident, that's why I cast the net a bit wider.

Or have them reinvested automatically into more Premium Bonds, then she doesn't need a bank account - unless she's at the £30k limit, or wants the cash.

skadi wrote: ↑Wed Sep 17, 2025 1:53 pm

Or have them reinvested automatically into more Premium Bonds, then she doesn't need a bank account - unless she's at the £30k limit, or wants the cash.

The current max holding for Premium Bonds is £50K.