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Property Rental Expenses - empty property

On going expenses when property empty (and on the market for sale) but other property held.

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Director owns residential property which is now empty and on the market for sale but continues to incur revenue expenses of management charges, council tax etc. His 'property rental business' continues as director rents commercial property to his limited company. I believe the residential property expenses continue to be an allowable deduction, effectively against the commercial rents, on the basis that there is no distinction between commercial and residential lets and that HMRC consider that a lettings business continues until the last property is sold (PIM2510). Current accountants suggest expenses not allowable because letting has ceased and quotes 'post cessation ' rules as justification.

What are members views please?

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By gainsborough
28th Jul 2019 11:54

See previous thread:, especially VNN's great analysis.

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