I have a client who has a rental property that he lets out:
- During the year, the rental property was being refurbished for 4 months and there were no tennants during this time: Can the usual expenses of the property be claimed during this period such as financial cost, property insurance, management fee?
- The property was put on the market for rent straight after the refurbishment was completed but for 2 months the client could not arrange a suitable tenant: I believe in this scenario the usual expenses (as explained above) can be claimed since the property was availble to rent, am I right?
Would appreciate your thoughts and comments.
Replies (6)
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If this is a new area for you, have a good look in the PIM around start/end of rental business. Its quite readable and cross references the various legislation to review.
I don't think from what you describe the property business has ceased.
I don't think from what you describe the property business has ceased.
Although I’m pretty sure it has, my only question mark was whether the business had commenced or if the refurbishment was of a newly acquired property. Not sure exactly what the impact would be if there was no existing business and a newly acquired property.
I have come across refurbishments for the first time
Then what a fantastic learning opportunity tou have. +1 to ireally's suggestion that you consult with the PIM, reading the extracts in context. Revert here with questions that arise, if any.