Self assessment tax question: no rental income for 2019/2020, but setup costs.

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    Self assessment tax question: no rental income for 2019/2020, but setup costs.


    Help and advice please.

    Self assessment tax question: no rental income for 2019/2020, but setup costs, minus figure.

    Tax questions...in regard to self assessment for 2019 to 2020 (no rental income, but various setup costs)

    My father-in-law has moved to a new property but has kept his old property and has been renting the property for the past few months, the rental income falls into the tax year 2020 – 2021.

    There is no mortgage on the property in question.

    But prior to the end of the 2019 to 2020 tax year he had zero rental income, but he has had various costs such as smoke alarms, various other work to make it suitable for renting, increased insurance costs (vacant property) and of course the dreaded council tax, so all outgoings whilst the property was vacant and been prepared for letting.

    So we were wondering, on his self assessment for 2019 to 2020, would he simply add up all his costs and input a minus figure? Or is it a little more complicated than that?

    #2
    You can charge the costs incurred whilst waiting for a tenant as expenses incurred on 1st day of the rental business.

    Comment


      #3
      Originally posted by Gordon999 View Post
      You can charge the costs incurred whilst waiting for a tenant as expenses incurred on 1st day of the rental business.
      Hi Gordon thank you for your reply, oddly enough my father in law is called Gordon!

      So does that mean, he simply inputs no figure for 2019 to 2020 ,but in 2020 - 2021 he factors in all his setup costs from 2019 to 2020 to prepare the property, insurance, council tax etc and shows it as a cost even though those costs were incurred in 2019 to 2020 tax year?

      Comment


        #4
        Yes, that's correct.
        His rental business began on the first day of the first tenancy, so all preparation costs are treated as being incurred on that day.
        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).

        Comment


          #5
          Originally posted by jpkeates View Post
          Yes, that's correct.
          His rental business began on the first day of the first tenancy, so all preparation costs are treated as being incurred on that day.
          Brilliant thank you for your advice, that is most helpful.

          Comment

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