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  • FIRST POST
    • matty_art
    • By matty_art 14th Nov 17, 7:04 PM
    • 144Posts
    • 35Thanks
    matty_art
    Accidental landlord selling property - expenses before sale after tenants move iut
    • #1
    • 14th Nov 17, 7:04 PM
    Accidental landlord selling property - expenses before sale after tenants move iut 14th Nov 17 at 7:04 PM
    Hi,

    I'm thinking the answer to this is not going to be the one I want to hear given my research so far, but I thought worth checking with fellow landlords or anyone with specific tax knowledge.

    I'm selling my flat which I used to live in before I moved in with my wife, and have subsequently let out.

    Coincidentally when I was deciding to sell, my long term tenants handed their notice in - as they are one month notice, I'm unable to get another tenant in before the sale as I've been doing minimum six months and the flat is now on the market so the sale could progress quickly.

    However as a result, I'm now liable for Council tax (while flat is furnished for viewings), utilities etc while still paying the ongoing service charge and mortgage.

    From what I've read, it seems that because I don't have any more rental income as of two weeks ago, I can't claim tax deductions for any expenses from now on as I no longer have a property business - is this correct?

    If these expenses were tax deductible I'd have enough income to offset against this tax year, if it was a possibility.

    I'm wondering whether popping if on AirBNB for a weekend or two after the sale has gone through might be a useful way to continue the business, but it does seem a little bit of a workaround...

    Any advice gladly received...
Page 1
    • 00ec25
    • By 00ec25 14th Nov 17, 7:46 PM
    • 5,325 Posts
    • 4,678 Thanks
    00ec25
    • #2
    • 14th Nov 17, 7:46 PM
    • #2
    • 14th Nov 17, 7:46 PM
    From what I've read, it seems that because I don't have any more rental income as of two weeks ago, I can't claim tax deductions for any expenses from now on as I no longer have a property business - is this correct?
    Originally posted by matty_art
    spot on correct
    I'm wondering whether popping if on AirBNB for a weekend or two after the sale has gone through might be a useful way to continue the business, but it does seem a little bit of a workaround...

    Any advice gladly received...
    Originally posted by matty_art
    whether the letting business has ceased is a matter of fact and would be subject to the key indicator: are you still actively advertising for tenants? If the property is up for sale you would struggle to make a convincing case that it was a continuing lettings business, you can't have your cake and eat it.

    read this, if not already done so:
    https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2510

    " For example, if the business only consisted of letting a single house, it would cease when the tenant left and the taxpayer began to use the house as a private residence or, alternatively, when they decided the house wouldn't be re-let."
    • greatkingrat
    • By greatkingrat 14th Nov 17, 9:35 PM
    • 66 Posts
    • 72 Thanks
    greatkingrat
    • #3
    • 14th Nov 17, 9:35 PM
    • #3
    • 14th Nov 17, 9:35 PM
    So place an advert asking for an extortionate amount of rent. It's not your fault if no-one takes up the offer!
    • 00ec25
    • By 00ec25 15th Nov 17, 12:26 AM
    • 5,325 Posts
    • 4,678 Thanks
    00ec25
    • #4
    • 15th Nov 17, 12:26 AM
    • #4
    • 15th Nov 17, 12:26 AM
    So place an advert asking for an extortionate amount of rent. It's not your fault if no-one takes up the offer!
    Originally posted by greatkingrat
    LOL, so following your "logic" a rental advert would be placed at the same time as the property was listed for sale.

    Yer right, rock on Tommy, with bells on.
    • Pennywise
    • By Pennywise 15th Nov 17, 7:45 AM
    • 9,318 Posts
    • 16,910 Thanks
    Pennywise
    • #5
    • 15th Nov 17, 7:45 AM
    • #5
    • 15th Nov 17, 7:45 AM
    So place an advert asking for an extortionate amount of rent. It's not your fault if no-one takes up the offer!
    Originally posted by greatkingrat
    And another piece of "pub talk" advice that HMRC would laugh at. HMRC have heard it all before, they're not daft. Anything "artificial" is ignored.
    • purdyoaten2
    • By purdyoaten2 15th Nov 17, 7:56 AM
    • 709 Posts
    • 315 Thanks
    purdyoaten2
    • #6
    • 15th Nov 17, 7:56 AM
    • #6
    • 15th Nov 17, 7:56 AM
    op - given that you have lived in and subsequently let the flat I would have thought that your Capital Gains position was more of an issue - or have you that in hand?
    purdyoaten lost his password
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