No profit

10/05/2019 13:10:29
My rental was left in a state by previous tennent so I had to cover costs from my own income to pay the mortgage and bills while I did the remedial work. There is never much profit in this property and this will now mean I've put around 3500£ of my own funds into it. There will be no profit.
Will I still have to pay tax?

No profit

10/05/2019 13:51:04

Re:No profit

13/05/2019 06:56:43

If the rental income that you receive exceeds the allowable expenses you wish to claim then you will pay tax on the difference.

If your expenses exceed the rental income that you have received then you will have made a loss and this can be carried forward to set off against profits from a later year.

More information and details of what expenses you can claim can be found at:

Income Tax when you let property: work out your rental income - overview

If you incurred expenses before you let the property to bring it to a state to enable you to let the property, these are capital expenses and as such cannot be deducted from the rental income.

You may be able to deduct these expenses from any Capital Gain that arises when the property is sold.