Empty rental property
PGM
Registered Posts: 1,937 Beyond epic contributor 🧙♂️
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.
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.
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Comments
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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!)0 -
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.0
