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bigduckontax, Accountant
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I have a rental cost query please. I thought I knew all the

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Dear Sir
I have a rental cost query please.
I thought I knew all the answers but I still come across issues I am not 100% sure of.
I have a client with 4 rental properties.
One property was vacated at the end of January 2016, remained empty and prepared for sale and sold this month.
The client has supplied costs after January 2016 such as council tax for a vacant property.
I know that a rental business does not cease until all properties are sold, but I still feel that the council tax on the vacant property would be for a "private purpose" in nature as it is no longer being let out.
This is the only client I have with a rental business of more than one property so I have not come across this issue until now.
many thanks
Peter
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello Peter, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I see your point, but your client is operating a rental business with multiple properties. As some revenue expenditure prior to renting out is allowable against rental income I see no clear reason against post rental costs of a reasonable nature being allowable also. However, one point eluded me until further research revealed this gem from Colman & Co Ltd:

'Where a taxpayer has more than one UK property, all rental income and expenses are pooled to determine the net profit or loss for the tax year'

Thus the expenses to which you refer in your question would be allowable as they would be in the pool.

I do hope that you have found my reply of assistance.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.

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