Losses before first rental income and income start date

Hi, I inherited a property on 16 November 2022 which I never lived in and always planned to rent out. The property was let to tenants with a contract starting 1 April 2023. I received first rental income from an agent on 12 April 2023. The property was habitable and could have been rented from 16 November 2022, but after this date and prior to 1 April 2023 I incurred what would be classed as allowable expenses (repair/maintenance works, council tax etc) It is my understanding that I can carry these forward into the 23/24 tax year (https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2505) When registering for self assessment it asks: "Date income from land and property started". What date should I put for this? If it is 12 April 2023, can I still complete a tax return to register the losses incurred in the 22/23 tax year, to be carried forward, even if I didn't received any income in the 22/23 tax year? Many thanks

Hi,

Usually a rental business begins when letting first commences, which in this scenario would mean that the rental business commenced on 1 April 2023 when the first letting began. It is important to distinguish between activities that are preparatory to letting and those business activities that are part of letting.

As long as the expenses incurred would have been allowed as a deduction if it had been incurred after the rental business started and were wholly and exclusively for the rental business and were of a revenue expense, not of a capital nature, then you are correct, you may claim these as allowable expenses.

As the letting began on 1 April 2023, depending on the payment basis, this would be from the point the business commenced. PIM1900 covers this in further detail as well as PIM1092.

PIM1900 - Deductions: Contents
PIM1092 - Cash basis for landlords: overview

Thanks