Council tax and mortgage interest on empty property for over 15 months?

by Readers Question

10:34 AM, 4th January 2021
About 2 weeks ago

Council tax and mortgage interest on empty property for over 15 months?

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Council tax and mortgage interest on empty property for over 15 months?

Hi and Happy New year to all. I am currently completing my tax return for 2019/2020, and I need a bit of advice, please.

I have 3 Properties on BTL on my sole name (I own 1 from 3 years ago currently let by the same tenant since the start of the business), and I have owned the other two since May 2019. These 2 properties have been void/empty due to renovation work then Covid-19 for around 12-15 months, however, both have been let now (1 let in June 2020 and the other one in December 2020)

My question here is for these two properties for the tax year 2019/2020 I paid a full year council tax and mortgage interest while the work is ongoing then delayed as well due to Covid-19, would I be able to deduct the council tax and the mortgage interest for the two properties for this period on my tax return as allowable expenses.

Thanks in advance.

Tamet


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Comments

Ross Tulloch

11:03 AM, 4th January 2021
About 2 weeks ago

On what you you have said, yes, as they were being prepared for letting. Also the renovation work would be deductible unless it was capital expenditure work (loft extension etc). This is how I see it and have done same in the past

Paul Shears

11:14 AM, 4th January 2021
About 2 weeks ago

Reply to the comment left by Ross Tulloch at 04/01/2021 - 11:03
Same here.

Alan Wong

12:12 PM, 4th January 2021
About 2 weeks ago

Before looking into the tax return, I would look into why you paid the full Council tax while it was empty as most council allows a minimum of 6 months of empty & unoccupied
property Ct exemption. And in some other scenarios when there is renovation there are other Ct exemption for up to 12 months. Would be beneficial if you check out are you paying for 12 months when you can apply for the Council tax exemption.

Paul Shears

12:31 PM, 4th January 2021
About 2 weeks ago

Reply to the comment left by Alan Wong at 04/01/2021 - 12:12Winchester council does not even give you one single day as I found out last year.
In fact, I paid a higher council tax on my empty rental property that I did on the identical one in which I live. So my income went negative, like so many other landlords I am sure.

mary marshall

12:54 PM, 4th January 2021
About 2 weeks ago

Reply to the comment left by Paul Shears at 04/01/2021 - 12:31
Derby City Council allow you 28 days free of charge of the property being empty.

Paul Essex

13:07 PM, 4th January 2021
About 2 weeks ago

Just one week council Tax relief in Suffolk.

John Mac

13:17 PM, 4th January 2021
About 2 weeks ago

Reply to the comment left by Alan Wong at 04/01/2021 - 12:12
In your dreams maybe! Hardly any councils give any leeway - its C.T due from day Tenant moves out.

silversurfer2017

14:54 PM, 4th January 2021
About 2 weeks ago

Reply to the comment left by Alan Wong at 04/01/2021 - 12:12
Few years ago we had a flood damaged property. It took 3 months to dry out and then new doors and party wall repairs to be carried out. In spite of being unfurnished and uninhabitable there was no reduction whatsoever in the council tax for this 3 month void period.

Paul landlord

9:12 AM, 6th January 2021
About 2 weeks ago

I deal with Nottingham council, Mansfield council, Leeds Council and Bradford Council in the spread of my portfolio and have been in the game 28 years.

I can't remember which council it is but it gives you one week grace. The rest nothing.

Surely we all know by now that the government removed empty property grace periods some four or five years ago?? And also they itncreased the council tax to 150% for properties empty for more than a year?

Come on get to grips with the legislation!

Jim S

13:26 PM, 9th January 2021
About 2 weeks ago

Stockport City Council charge 100% ctax if empty for the first two years and then 200% ctax. I have a formal complaint going through with them right now as I feel that it unfair that they charge me 200% ctax because I could not do building work during the first lockdown. I have asked them to extend the two year period at 100% ctax by the same time we were in lockdown (3 months) as I was not legally allowed to do any building works to my property to be able to have it become habitable and so not have to pay 200% ctax.
In my opinion this is the Stockport City Council profiteering from the pandemic. I have written to my MP Navendu Mishra who has been absolutely useless. He did write back once but completely missed all of the main thrust of my complaint so his reply was useless and since then he just does not respond to any of my emails. A totally useless and weak politician who should be seizing this opportunity to help his constituents. Lets see how the formal complaint pans out.
Is there a process for complaining about your MP? I can't even visit him in person due to the Coronavirus. I asked the NRLA to write an article about this case in their magazine but no interest shown. Why are the NRLA so afraid to call out the Government?

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