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Posted Sun, 30 Jul 2023 18:26:44 GMT by
Hi, I have activated 2 months mutual break clause in my tenancy contract since Nov 2022 explaining to my tenants that I need my sole property back to live in, however, my tenants refused to move out till now (July 2023), forcing me and my children to rent nearby, while I go through the legal process to evict them. In the interim, is rental expense an allowable deduction in the computation of rental income tax? Thanking you for your advice.
Posted Thu, 03 Aug 2023 15:13:21 GMT by HMRC Admin 10
No ,you cannot claim your own rental as an expense.
Posted Tue, 22 Aug 2023 07:51:01 GMT by
Thanks for responding. The fixed term of my rental contract has expired in May 2023. I ’m no longer contractually renting to the tenant, hence shouldn’t be receiving an income. The tenant is aware of how the “system” works and continues to pay rent like before, till court eviction. However, there is no legal agreement between us to rent because the contract has expired, and I did not renew it because I need my house back to live in. My own rental expense is incurred while waiting for court eviction. Since there is no valid rental contract, for the purpose of tax, is it possible to offset my own rental expense with the rent the tenant continue to pay me ? Thanks.
Posted Wed, 30 Aug 2023 16:51:14 GMT by HMRC Admin 25
Hi celeste110,
Thank you for your further question
Although the tenancy contract ceased on expiration , rental income continued to accrue.
In much the same way as outstanding arrears of rent are taxed on receipt, the only expenses allowable would be the costs incurred in collecting that debt.
Although there is no valid contract , it is not possible to claim your own rental expense as a deduction from your rental income.
Thank you. 

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