Rental Property expenses during Refurbishment

Rental Property expenses during Refurbishment

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I have a client who has a rental property that he lets out:

  1. 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?
  2. 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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By David Ex
15th Jun 2021 10:52

I’m struggling to think of reasons to disallow.

Thanks (1)
By ireallyshouldknowthisbut
15th Jun 2021 15:44

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.

Thanks (1)
Replying to ireallyshouldknowthisbut:
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By David Ex
15th Jun 2021 16:02

ireallyshouldknowthisbut wrote:

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.

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Replying to David Ex:
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By billy009
21st Jun 2021 23:25

No the property has not been ceased.
It was let out but then due to refurbs, all tenants were told to leave the property.
Once refurbs were completed, the property was back on market to be let out.

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Replying to ireallyshouldknowthisbut:
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By billy009
21st Jun 2021 23:24

I have come across refurbishments for the first time

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Replying to billy009:
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By Tax Dragon
22nd Jun 2021 06:39

billy009 wrote:

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.

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