Q. It may sound crazy but I have just undertaken my first project in property development and wonder what I might be able claim back in relation to tax? I have kept all receipts to date but would like to know what I can legitimately claim.

A number of works have been carried out, mostly by contractors: a central heating system, new windows, a new kitchen with integrated appliances and a new bathroom suite. The property has also been fully rewired and re-plastered. There are also new carpets throughout and the garden has been re-landscaped with new pathways, gravel etc.

A. You would be best served by seeking specialist tax advice from a certified chartered accountant. Broadly speaking, the expenses that you can deduct from any profit will include legal fees, estate agents’ costs, stamp duty and any expenses directly relating to the development. There will also be some other ancillary expenses that you could include such as telephone calls, use of your car to visit the site etc.

If you are developing with a view to letting the property, most or all of the expenses you listed will be of a capital nature. Although you wouldn’t be able to offset these against rental income, they can be added to the cost of the property and should be deductible for capital gains tax purposes if and when you eventually dispose of it. Finally, if this is going to be a full-time business, you are also obliged to notify the Revenue of your self employed status (within three months of starting) and prepare accounts for each tax year to show your income and expenditure for the year. These accounts would then form part of your self-assessment tax return. See the HM Revenue & Customs website.

Q. I am 20 years into a 25 year repayment mortgage to which I have also been contributing to an endowment policy attached to the mortgage. Due to recent fortunate financial circumstances, I have just paid off the mortgage in full. However, I still wish to contribute towards the endowment as a savings vehicle and cash it in at the end of the term. Please can you advise whether there are any tax implications for me, as the policy is no longer attached to a property purchase.

A. The good news is that when your endowment has matured, even if you have previously paid your mortgage in full, then the proceeds from the endowment policy plus any accrued bonus is yours, completely, and there will be no liability to pay tax on this income. Enjoy!

Q. My wife and I are wanting to downsize and adopt a much greener lifestyle. We are both interested in exploring new eco homes such as those constructed from straw bales which are reputed to have excellent thermal qualities and be really cheap to build. Can you advise please.

A. Enthusiastically espoused by people on programmes such as ‘It’s not easy being green,’ and ‘Grand Designs’, straw bale homes are becoming an increasingly popular home choice for the seriously eco-conscious among us. As you rightly say, homes constructed of straw bales provide excellent thermal qualities and they are also surprising solid.

The key benefit apart from their green credentials is the price – a remarkably inexpensive £5,000 for a 40m² building. However, there is also the cost of the land to add to that as well as any planning and building regulations issues to address. Amazonails is an excellent website for people interested in straw bale homes.