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

Trish

16:47 PM, 10th January 2021
About A week ago

Reply to the comment left by Alan Wong at 04/01/2021 - 12:12
My local council gives only 6 weeks exemption from council tax on an empty property (and if it has been empty for more than 2 years, the council tax is doubled!)

Michael Barnes

18:37 PM, 11th January 2021
About A week ago

My understanding:

As you already had a lettings business, the costs are allowable for the 2019-20 tax year.

Had these been your first lettings, then they would have been claimable on your 2020-21 tax return; in this case they should have been put into the accounts dated the day the first property was let.

And don't forget that only a proportion of the interest (and arrangement fees) can be deducted directly; the rest go in a different box in the tax return.

John Mac

10:08 AM, 12th January 2021
About A week ago

Reply to the comment left by Trish at 10/01/2021 - 16:47
"only 6 weeks exemption" I Wish !! 🙁

Jon D

20:17 PM, 17th January 2021
About 3 days ago

I read very clearly that any single property must have been let prior to any refurbishment works and for such costs to then be allowable as a BTL expense.
But hey, nothing stopping you knocking up a quick backdated AST with your mate, even if it was 'aborted' because the dog was ill etc, etc.

Not that the broken bureaucracy they call HMRC will ever see any of this paperwork.

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