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Rental income - Offsetting mortgage interest / insurance

Hello,

I've recently started receiving a rental income from a property I have a mortgage on.

When doing my 2012/13 tax return can I offset the full years mortgage interest against the income, even if I didn't begin receiving a rental income until October 2012? Before October the property was vacant whilst I was preparing it for rental.

I've got a good handle on what I've incurred etc.. but just need some clarity around the period in which I can deduct expenses.

Thanks!

Matt

Comments

  • Kynthia
    Kynthia Posts: 5,692 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    This link may help:
    http://www.hmrc.gov.uk/manuals/pimmanual/pim2505.htm

    I guess the argument is can you hand on heart say that the property was a rental business for the whole financial year, even though you didn't have a tenant in there. That the property wasn't used for anything else, such as you or others staying there, and that the mortgage interest was 'wholly and exclusively' for your property business. Also could you justify why your property business took six months before it gained a tenant?
    Don't listen to me, I'm no expert!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Do you own another residential property or can provide evidence of having paid rent? If the rental property was empty.
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