Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 18 May 2023 19:49:44 GMT by Joanna Keith
Hi, I rented out a property for a few years until the tenant moved out in April 2022. I decided to sell the property, and it sold in January 2023. After the tenant moved out, I had to pay £3000 for council tax and other costs. I know that if selling this property was the cessation of my property business then the £3000 would not be tax deductible. However, I am about to buy a new property to rent out which means that my property business has not ceased. As my property business has not ceased, does this mean that the £3000 can be deductible in the last tax year (which would give me a tax loss to carry forward to the current tax year)? Or is the £3000 not deductible even if my property business has not ceased? Thank you
Posted Mon, 22 May 2023 17:06:57 GMT by HMRC Admin 10
Thank you for your question.
The loss could be carried forward to set against profits from the same rental business provided you resume letting before April 2025, PIM2510 - Beginning and end of a rental business: cessation - HMRC internal manual - GOV.UK ( refers here if there’s less than a three year gap between properties being let we would accept this was just a temporary pause rather  than a cessation of the rental business.

You must be signed in to post in this forum.