Rental Property not available for letting

Rental Property not available for letting

Didn't find your answer?

My client has three properties two of them are being rented out but the other one has not been let out for a 20 months (12 months upto 31st March) since they are deciding what to do with the property. They need to spend money to refurbish the property as it is not in a condition to let at the moment.  

I assume the 3rd property costs like mortgage interest cannot be included in the tax return since the property is not available for let.   If someone can point me to the relevant legislation that would be helpful

Thanks

Replies (3)

Please login or register to join the discussion.

By mrme89
15th Dec 2014 20:41

See PIM2505

http://www.hmrc.gov.uk/manuals/pimmanual/pim2505.htm

 

You need to satisfy wholly and exclusively. If the property is not currently being let, the mortgage interest cannot be wholly and exclusively. 

 

 

Thanks (0)
Portia profile image
By Portia Nina Levin
16th Dec 2014 10:32

I disagree

The rental business is the whole rental business; all three properties. It has not ceased.

See: http://www.hmrc.gov.uk/manuals/pimmanual/PIM1020.htm

If the property continues to be an asset of that rental business, but is currently simply "out of action", I think the mortgage costs are being incurred wholly and exclusively for the purposes of the overarching property business.

Thanks (1)
avatar
By possep
16th Dec 2014 12:52

Rent

I agree with Portia. On the basis you have queried this I would have also expected a query regarding the costs of improvement on the property prior to sale?

Thanks (0)