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Empty rental property

PGMPGM Font Of All KnowledgeRegistered Posts: 1,954
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.

Comments

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    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!)
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    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.
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