Question about tax on rental property

Cleaver

Hoping some kind soul can help out with a bit of advice on tax on rental income.

My wife and I owned a flat that we rented out. In terms of the last tax year, we had a tenant living there during April and May 2013, but they then moved out. We then put the property on the market and it completed in October 2013.

We obviously only have rental income for two months, but have expenses relating to the flat in terms of the service charge from April 2013 to October 2013. The flat was empty between the tenant moving out at the end of May 2013 until October 2013 whilst the property was on the market.

My question is whether tax relief can be claimed on the service charge for only the two months during rental income, or during the whole seven month period, even though the flat was empty for five of them? The HMRC guidance doesn't seem to cover this specific situation.

Appreciate any advice.

busybee100

It's income and expenses relating to the whole tax period.

Cleaver

busybee100 wrote: »

It's income and expenses relating to the whole tax period.

Thanks for the response. So I can claim tax relief for a period even though the property was empty and on the market to be sold?

00ec25

there is a tiny amount of manoeuvring room here in that under self assessment it is down to you to be honest about the date at which you decided the rental business had ceased and you were not intending to re-let
you could try to claim all the way to October but (patently) your rental business had ceased when the last tenant left as you were not actively seeking new tenants and you were in fact winding up the business by selling off its only asset
http://www.hmrc.gov.uk/manuals/pimmanual/pim2510.htm

I quote "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."

Cleaver

00ec25 wrote: »

there is a tiny amount of manoeuvring room here in that under self assessment it is down to you to be honest about the date at which you decided the rental business had ceased and you were not intending to re-let
you could try to claim all the way to October but (patently) your rental business had ceased when the last tenant left as you were not actively seeking new tenants and you were in fact winding up the business by selling off its only asset
http://www.hmrc.gov.uk/manuals/pimmanual/pim2510.htm

I quote "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."

Ahh, that clears it up nicely. Must have missed reading that first time around! Thanks very much for your help.