I have a client who has one rental property but inherited a second property around six years ago.
The second property has never been ready for let until last year and just been left but had been incurring mortgage interest and council tax costs each year
There has always been an intention to let the property but only from September 2019 the tenant has been paying rent. To complicate matters they had a tenant who would carry out repairs in lieu of paying rent which I think was from February 2019.
Under ITTOIA/S57 and CTA09/S61
"Thus, after the first property has been let, any later expenditure leading up to the letting of the second and later properties is part of the rental business and can be deducted, provided it meets the conditions outlined at PIM1900 onwards (it is incurred wholly and exclusively for the purpose of the business, it isn’t capital expenditure etc.)"
Presumably interest and Council tax would not be allowable as revenue expenditure until the second property is ready for let and any repairs to make the property fit for let would be deemed to be capital ?