Client moved out of house to new premises and spent a period (a year or so) converting it to a multiple unit letting.
Obviously the converion costs are capital, but what of the mortgage interest paid during that time? Is it capitalised too, or is it banked to set against future revenues?
If anyone knows I would be grateful as I don't have time today to research it :o(
Replies (3)
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Indeed.
Note it on file and when the first tenant moves in (the commencement of the property business in HMRC language) you can then claim the interest as pre trading exp, treated as being incurred on first day of trade.
Doh!
Chelsea v ManCity 6 pointer :o)
Thanks guys, exactly what I thought but the stress of the possibility (remote of course) of the light blues beating the dark blues turned my brain soft.