Self Assessment But No Tenant Yet

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    Self Assessment But No Tenant Yet

    Hi Folks,

    My wife and I bought a buy to let property in December 2018. I have been making repairs (evenings and weekends) such as new electrics, floors, doors etc. Basically to make it habitable for the tenant. We have paid out a rough budget of around £8000 to get this all done, this includes a gas heating installation.

    We have a tenant lined up and they are hoping to move in around July 2019.

    I am currently doing a self assessment tax return for my main business (IT engineer) but was not sure whether I add the property expenses into the 18 - 19 return. We obviously have not made any money and rather a loss on the rental property as we have not had a tenant.

    I just can't seem to find if I should declare these losses on the 18 - 19 return or wait until the 19 - 20 return since the tenant will only be in from July 2019. If we do this can we declare the expenses on the next return and basically split it 50 - 50 as we are halfers on this investment so income and expenses are split down the middle.

    Finally do I enter it as another business on the online return? The only other option I could see what "Did you make any money on property..." but we didn't until the tenant is in.

    Hopefully this makes sense and I look forward to hearing from anyone who can help.


    Your property business commences on the day the first tenant moves in, and all the expenditure prior to that is treated as if it occurred on that date.

    You should review which developments significantly added to the value of the property as they're capital expenses, rather than being allowable against income.
    Where elements of the property are replaced, there will inevitably be some improvement, but that doesn't necessarily make the item a capital item, but if the whole property was a fixer upper and was purchased at a lower cost as a consequence, the whole process will have a capital element to it.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


      If your first tenant moves in in July 2019, you can report the income/expenses in the 2019-2020 tax return


        That's fantastic guys, thanks so much for telling me this, I can now do my tax return and worry about the rental property on the next one. I understand about capital expenses so will be careful about what I claim. Although I see some good guides which is great and should keep me on the right side of HMRC.

        Thanks again


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