When can interest relief be claimed on rental prop

Considering selling a UK rental property. When does the ability to claim interest relief end?

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A colleague is thinking of selling a rental residential property as it has just been vacated. Given that conveyancing takes at least 3 months after finding a buyer these days in England, is it a requirement to find a new tenant whilst looking to find a buyer (and then giving the tenant 3 months notice once said buyer is found) in order to claim mortgage interest relief on the property, or can it be left vacant for a while until the sale is exchanged on and still claim said interest relief for that empty period? I said I would look for an answer on this site as it has been very useful in the past but I am struggling to find anything on this specific matter. Can anyone assist please? Many thanks.

Replies (4)

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By David Ex
11th Jan 2024 13:07

If you are not qualified to give tax advice, don’t, especially if you’re just passing on comments from an anonymous internet forum.

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paddle steamer
By DJKL
11th Jan 2024 13:51

Are there other properties within this rental business besides the one to be sold?

You need to define when the rental business ceases.

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By possep
11th Jan 2024 13:56

I believe that the owners intention is relevant. If they are not sure whether to re-let or sell, once it advertised for sale there won't be any interest relief. If it doesn't sell and they advertise to let then interest would be due from when it was available to let again and no longer on the market.

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Replying to possep:
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By richard thomas
11th Jan 2024 15:26

I agree entirely with that analysis, save that I would say, consistently with your first sentence, that it is the owner's decision to sell, rather than to advertise, that triggers the cessation of the business. It probably doesn't make a significant difference.

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