Skip to main content

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

Posted Fri, 19 May 2023 07:34:53 GMT by AlexF F
If my holiday let is part of my residential property. How do I separate the holiday let expenses if most of the domestic bills are shared with our residential property?
Posted Mon, 22 May 2023 17:09:53 GMT by HMRC Admin 10
Thank you for your question.
Any deductions against the rental income must be revenue and not capital in nature and wholly and exclusively incurred for rental business purposes, see PIM2005/2010.
As PIM2010 notes, where revenue expenses have a dual purpose, so for both the rental business and private, where a clear apportionment can be made between the business and non-business expenditure then the identifiable business element may be allowable as a deduction.
If a proportion of the expenses can be identified as relating to the holiday let then that may be allowable, but you would need to be able to substantiate this with documentary evidence in the event of any enquiry.
One final point to remember is the potential CG effect when the property is sold.

You must be signed in to post in this forum.