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  • RE: Property letting - apportionment of service charge and ground rent

    Thanks for that. I do notice, though, that at the link for "applying the wholly & exclusively rule" (https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2010) it says "Where a definite part or proportion of an expense is wholly and exclusively incurred for the purposes of the business, that part or proportion can be deducted" and it gives the example of vehicle running costs. Service charges and ground rent covering a period that includes the rental period seem similar to this, in that they are only incurred for the purpose of the property letting during the rental period (presuming the property would otherwise have been sold after the owner moved out and they would have been paid the remaining portion of the service charge and ground rent). I did also find at the following link "if for instance you had paid an annual insurance premium on 1st April and left the property with a view to letting it on the following 1st October, then you would claim one half of the insurance premium paid even though it was paid when you occupied the property" (https://uklandlordtax.co.uk/allowable-expenses-against-rental-income/) - is this link incorrect, since it seems to contradict what you wrote? Again, this seems similar to the service charge case. This seems like something where a clearly stated example relating to service charges and ground rent on the HMRC information pages would be valuable.
  • Property letting - apportionment of service charge and ground rent

    Hello, I recently started letting out a flat that I had previously been living in. I paid the service charge and ground rent before the property was let out. Am I supposed to claim these as tax-deductible expenses for the period the flat has been let out on a pro rata basis (e.g. 50% if the flat was let for half of the financial year), or is it payments that were made during the letting term that are claimed? I can't find this confirmed anywhere.