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Posted Wed, 18 Dec 2024 09:19:09 GMT by timcatwong
I had a rental income since Oct 2024, and with expense in repair done in Nov 2024 amounted £5,000. Normally, this expense should be claimed in tax year 2024/25. However, can I claim this expense in next tax year 2025/26? Or else, I can split the expense into different tax year 2024/25, 2025/26, 2026/27..............?
Posted Mon, 06 Jan 2025 09:22:28 GMT by HMRC Admin 19 Response
Hi,
Usually the rental business does not begin until the first property is let. Any expenses incurred before the first let must be solely for the rental business and must not be capital expenditure. Any qualifying pre-letting expenses are treated as incurred on the day the rental business commences.   
If you have already let your first property in 2024 to 2025 then the expenses will be incurred in 2024 to 2025. There is no splitting expense into different tax years. You can see guidance here: PIM2505 - Beginning and end of a rental business: commencement  
Any loss that you make in 2024 to 2025 can be carried forward to later tax years so you are not losing out.  
The main method of relieving a loss is to carry it forward and deduct it from future rental business profits. When carrying forward a loss you must use it in full against the first available rental business profits. You cannot opt to take a smaller amount. You can see guidance here:
Losses
Thank you.

 

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