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Posted Mon, 16 Jan 2023 13:07:46 GMT by Heidi Speckmeier
Hi, I will be doing self assessment for the first time this year as I started receiving income from letting property. The property was purchased in November 2021, but we only started letting it and getting an income in September 2022. Am I able to claim allowable expenses prior to when it was first let in September 2022? For example Electricity, gas and council tax from purchase date until the tenants moved in Thanks 
Posted Thu, 19 Jan 2023 16:01:22 GMT by HMRC Admin 5

Usually the rental business does not begin until the first property is let.

Any expenses incurred before the first let must be solely for the rental business and must not be capital expenditure.

Any qualifying pre-letting expenses are treated as incurred on the day the rental business commences, which to confirm, is usually the day the property is first let.

After the first property has been let, any later expenditure leading up to the letting of the second and later properties is part of the rental business and can be deducted - provided it is incurred wholly and exclusively for the purpose of the business and isn’t capital expenditure.

You can find more details here:

PIM2505 - Beginning and end of a rental business: commencement

Thank you.

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