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Letting a property for part of the tax year

Ed-1
Ed-1 Posts: 4,015 Forumite
Part of the Furniture 1,000 Posts Name Dropper
edited 6 December 2018 at 6:11PM in Cutting tax
Do expenses in relation to a let property need to be apportioned depending on how long in a tax year that property has been let out?

E.g. if you spent £200 upfront on Landlord's insurance for 12 months but only let the property out for 7 months of the tax year, does that expense need to be apportioned in any way or can the full amount be claimed against rental profits?

Same for e.g. mortgage interest.

Comments

  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It depends. Was it rented out before and after the void period? Why was there a void period - were you living in it, did you let it to a friend/relative, was it just empty between lets. The context is all-important.
  • Ed-1
    Ed-1 Posts: 4,015 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Pennywise wrote: »
    It depends. Was it rented out before and after the void period? Why was there a void period - were you living in it, did you let it to a friend/relative, was it just empty between lets. The context is all-important.

    Bought, rented commercially then rent-free to family.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Ed-1 wrote: »
    Bought, rented commercially then rent-free to family.

    So, no, you can't claim any of the costs for the time it wasn't let out commercially. You'll have to apportion the costs on a time basis and not claim the time apportioned costs for the period your family were living in it.
  • Ed-1
    Ed-1 Posts: 4,015 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Pennywise wrote: »
    So, no, you can't claim any of the costs for the time it wasn't let out commercially. You'll have to apportion the costs on a time basis and not claim the time apportioned costs for the period your family were living in it.

    So how do you do this if the property was bought on 1st August and let out commercially until 1st November (3 months) and then let to family (uncommercially) from then? The property is only part of the rental business for 3 months of the tax year but the part of the tax year before 1st August isn't relevant anyway.
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