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  • FIRST POST
    • Ed-1
    • By Ed-1 6th Dec 18, 6:07 PM
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    Ed-1
    Letting a property for part of the tax year
    • #1
    • 6th Dec 18, 6:07 PM
    Letting a property for part of the tax year 6th Dec 18 at 6:07 PM
    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.
    Last edited by Ed-1; 06-12-2018 at 6:11 PM.
Page 1
    • Pennywise
    • By Pennywise 6th Dec 18, 6:51 PM
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    Pennywise
    • #2
    • 6th Dec 18, 6:51 PM
    • #2
    • 6th Dec 18, 6:51 PM
    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
    • By Ed-1 6th Dec 18, 7:12 PM
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    Ed-1
    • #3
    • 6th Dec 18, 7:12 PM
    • #3
    • 6th Dec 18, 7:12 PM
    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.
    Originally posted by Pennywise
    Bought, rented commercially then rent-free to family.
    • Pennywise
    • By Pennywise 6th Dec 18, 7:39 PM
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    Pennywise
    • #4
    • 6th Dec 18, 7:39 PM
    • #4
    • 6th Dec 18, 7:39 PM
    Bought, rented commercially then rent-free to family.
    Originally posted by Ed-1
    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
    • By Ed-1 6th Dec 18, 7:50 PM
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    Ed-1
    • #5
    • 6th Dec 18, 7:50 PM
    • #5
    • 6th Dec 18, 7:50 PM
    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.
    Originally posted by Pennywise
    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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