Continuing Rental unfurnished properties business

Continuing Rental unfurnished properties business

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Have any readers used PIM2505 to claim pre-letting expenditure on a continuous lettings business for a newly purchased property?

Further unfurnished property added to the property business, had work completed just before letting. Would not be allowable on a first letting on first property..  

However, PIM 2505 says 'Once a rental business has started, all activities will be treated as carried out in the course of one business.'

Replacement of bathroom suites and fixtures.including replacement tiles and ceiling.  Where else other than Property repairs and maintenance?

Thank you.



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By rmillaree
27th Sep 2023 15:57

I think you may be getting confused with guidance.

note PIM2505 clearly states
Expenses incurred before rental business begins
A customer may incur expenses for the purposes of a rental business before that business starts. If so, they may be able to claim a deduction for them once the letting begins (ITTOIA05/S57 or CTA09/S61). Relief is only due under these special rules where the expenditure:
would have been allowed as a deduction if it had been incurred after the rental business started. (2 other points needed i have glossed over as they should be met most of teh time)

this is saying the rules as to whether claim can be made are the same whether its first property or whether its later property.

unless i am missing something?

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