Empty rental property

PGM

I've been asked a question;

About a rental property thats now been empty almost a year, being slowly (due to cost and owners taking their time doing it themself) repaired after previous tennants took their toll.

It will therefore show a big loss for the year with mortgage interest and materials costs.

Is all this cost eligible or is there any rules that could stop that?

thanks.

T.C.

All allowable but...! Just because the client doesn't have it rented that is up to them. You could say that they were still renovating, or just lazy about getting a tenant in. The only alarm bells it could ring with HMRC are that the client has been renting for cash and not declaring. Just a note to remember regarding repairs, they are allowable, but capital expenses should be capitalised! Hope that helps.

(I love this type of accounting!)

PGM

T.C. wrote: »

All allowable but...! Just because the client doesn't have it rented that is up to them. You could say that they were still renovating, or just lazy about getting a tenant in. The only alarm bells it could ring with HMRC are that the client has been renting for cash and not declaring. Just a note to remember regarding repairs, they are allowable, but capital expenses should be capitalised! Hope that helps.

(I love this type of accounting!)

Thankyou.

I thought that was probably the case. Good point about the alarm bells though!

I had wondered if there was any rules such as with holiday rentals.