Insurance Expenses incurred on exchange date

I currently have four properties for rent in UK. Recently, I have purchased an additional property for rent. The exchange date was on 5 April 2024 while the completion date will be 18 April 2024. On the exchange date of 5 April 2024 (last date of fiscal year 23/24), I purchased the landlord insurance for that additional property. May I know if the insurance expenses for that additional property will be regarded as deductable expenses? f yes, may I know if it should be reported in the 23/24 self assessment or in 24/25? I used cash accounting in previous years of self assessment. For the field of "Number of Property to rent" in 23/24 self assessment, should I put "4" or "5" in the return? Thank you.

Hi,

The exchange date takes precedence over the completion date. It is up to you to decide how you wish the landlord insurance to be claimed as an expense. You could claim it for 2023-24, which would create a loss for the property to 5 April 2024 as you have no rental income to set the expenditure against. Alternatively, you could wait and include the expenditure in 2024 to 2025, and set the expenses against the rental income you received in relation to that property. 

PIM2505 - Beginning and end of a rental business: commencement.

As the property was purchased on 5 April 2024, you should show 5 properties when completing your Self Assessment tax return.

Thank you.