I have operated a FHL for five years and have just purchased a second property to operate as a FHL. I understand purchase and renovation costs can only be offset against CGT, but can the running expenses of this second property (eg council tax, utilities) between purchase date and first letting as FHL, be offset against revenue? And when does the second property become included on the tax return - from purchase or from first let?
Thank you for your question. You can claim expenses that you have incurred up to you letting your second property but these can only be claimed when you start to receive rental income from your second property. Please see our guidance at
You will include this income and claim any expenses incurred on the return for the year that you start to receive rental income from this property and not from the date of purchase. I hope this helps