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Rental property disposal and expenses

Rental property disposal and expenses

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Client has a flat purchased in 2007 which has only ever been rented out as an unfurnished let.

Final tenant has just left and client is incurring some costs to prepare property for sale. Can these be claimed?

new carpets £390
mortgage interest approx £290 per month on an interest only mortgage
painting interior walls.

Client is not sure how long it will take the property to sell so there could be a few months of mortgage interest payments.

Thanks for help.


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By Rebecca Cave
15th Aug 2013 15:25

Has the letting business ceased?

If client has other properties in the UK which are currently let, you could set the remaining revenue expenses ( interest + repairs) against the income from those other properties. Otherwise no deduction for interest or repairs is permissable against the capital profit.

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By rushtonp
16th Aug 2013 06:44

has the letting business ceased?

Thank you taxwriter.

Yes, this is clients ownly property in her own right. However, she does have another property which is jointly let with her husband.

Can the interest and repairs that are incurred now the property is no longer rented be offset against the profits that have accrued so far in the tax year though? Property is being sold but this could take a few months to go through.


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