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Expenses incurred on second rental property before rental income received on second property

29/04/2019 06:33:57
I have rented out one property for a number of years and have recently acquired a second property to rent out. Rental income from the second property is expected to start from June 2019. In tax year 2018/19 I incurred allowable expenditure on this second property. Am I able to deduct this expenditure from the income received on my first property in the tax year 2018/19 even though a rental agreement is not yet in place for the second property? I own 50% of each property with the other 50% of each property being owned by two separate individuals.
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Re:Expenses incurred on second rental property before rental income received on second property

29/04/2019 12:51:30
Hi,

After your first property was let out, any later expenditure leading up to the letting out of a second property will be treated as being part of the rental business.

This means that as long as any allowable expenses are incurred wholly and exclusively for the purpose of the rental business then they can be treated as an allowable expense against any current income from property.

We have more information here:

PIM2505

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