This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Allowances against tax after letting ends

Kennedy Gillies
Posts:5
Joined:Wed Mar 22, 2017 10:32 am
Allowances against tax after letting ends

Postby Kennedy Gillies » Wed Apr 12, 2017 8:49 am

I ceased letting a property in August 2016 and it is now up for sale. I want to know what the position is regarding allowance for mortgage interest and expenses which are still on going.

When I fill in my tax return do I enter the amount of interest and expenses calculated on the number of months the property was let or for the whole year?

I have already paid £360 and £420 respectively for Home Survey Report and Estate Agency Advertising with regards to the sale of the property. Can I allow all of that against tax?

There will still be on going expenses on the property during this financial year although I will not be letting it. Am I able to claim these expenses and the legal fees for selling the property when that occurs?

Any advice would be appreciated
Kennedy Gillies

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Allowances against tax after letting ends

Postby maths » Wed Apr 12, 2017 1:58 pm

Relief for post cessation expenses is somewhat limited [ITA 2007 ss125 and 97].

Any relief available is offset against other income of the individual for the relevant tax year.

Mortgage interest relief I believe would not be relievable.

Some of the other costs you refer to would be allowable when computing any capital gain on sale.


Return to “Property Taxation”