Rental Property not ready to let and claiming tax deduction for mortgage interest

Rental Property not ready to let and claiming...

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Client has three properties and just about to complete a 2014/15 tax return for her .  Two rental properties are being let but the other has not been let for two years (and dont think its ever been let) though work has been ongoing for the last two years on the property to get it ready for let.

Can the client claim the mortgage interest as a tax deduction even though its supposed to be getting ready for letting ? I understand it will finally get let in 2016

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By cheekychappy
26th Jan 2016 14:39

On the basis that it was purchased after the property business commenced, the interest is allowable.

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By TaxAngel
26th Jan 2016 15:42

I agree

There is something in HMRC manuals supporting this view as I recall.

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