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Posted Wed, 22 Sep 2021 17:09:04 GMT by Countginger
I have had a rental property for several years which included rental income and expenses for tax years upto and including 2021-22. The property has recently been sold but, as a result, some expenses incurred during 2020-21 have been part refunded shortly after the sale (e.g. due to cancellation of insurance part way through the term, a pro-rata refund was given). Please could you tell me how this pro-rata refund of expenses should be reported (e.g. update tax return for 2020-21, include in tax return for 2021-22 or something else)?
Posted Thu, 23 Sep 2021 15:23:08 GMT by HMRC Admin 2

If you have already completed the return then you will need to amend it to change the expense figure, to remove the refunded amount.

This will be recorded on the return in which you would have claimed the expense.

Thank you.

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