Sequence of events:
1. Purchase of property, habitable but needs some tidying up which are valid repairs, £5,000.
2. Let rent-free to family member for 2 years - ring fenced from the rest of the property portfolio - no expenses claimed.
3. Family member moves out, unconnected person moves in at market rent.
Can the initial repairs of 2 years ago now be claimed?
Related resources
Replies (3)
Please login or register to join the discussion.
no
1. How can they possibly relate to the period of letting?
2. See the Odeon Associated Cinemas case
Maybe
Property portfolio to other unconnected people already existed when let to connected person startedDefinitely repairs
In response to chickenfarmer, and comments appreciated BTW:
It's the tax planning implications which I struggle with, ie, should have first let to an unconnected person for a full tax year to claim the expenses or establish losses for c/f or offset against other properties, then let to the connected person.
Also - landlord wouldn't have got the market rate for the subsequent unconnected let without incurring the expenses. They remain pre-letting expenses.