Question on BTL allowable expenses without rental income

webmister22

Hi All,

Last year I decided to rent my house out as I've moved in with my partner and I took out a BTL mortgage in March 2018. The upfront cost of the mortgage was £1000 and I understand that under the tax rules I can claim 50% of this back as an allowable expense.

I did not receive any rental income in the 2017/18 tax year when this expense was incurred. Do I need to submit a tax return for 2017/18 to claim this or can I include it in my 2018/19 tax return which does include rental income.

Any advice would be much appreciated.

Thanks

Webmister22

anselld

You cannot claim it until first let so 2018/19 by the sound of it.

Also it is not quite correct to say you can only claim 50%. You can claim 100% but 50% of that is limited to 20% tax.

webmister22

Hi Anselld,

Thanks for the prompt response.

So I'll be able to claim for this expense on my 18/19 return even though I've incurred it in the 17/18 tax year. Is this correct?

Thanks

Webmsiter22

00ec25

webmister22 wrote: »

Hi Anselld,

Thanks for the prompt response.

So I'll be able to claim for this expense on my 18/19 return even though I've incurred it in the 17/18 tax year. Is this correct?

Thanks

Webmsiter22

that is what he said and he is right
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505