10:16 AM, 17th May 2014, About 10 years ago 7
I’ve recently been reading the HMRC toolkit about rental tax which I found very clear and informative, until however, I called the HMRC and they corrected my thinking! The confusion is over this statement:
“Expenditure incurred prior to the commencement of a rental business is allowable if it is wholly and exclusively for the purposes of the rental business and is not a capital expenditure”
You can also claim up to 7 years of expenses prior to the start of the rental business.
I assumed this would mean property sourcing costs such as attending viewing’s and estate agents at 45p a mile, Mobile phone costs etc. I was informed it was only costs AFTER acquiring the property.
But surely that flies in the face of the statement “Prior to the commencement of a rental business” as once you’ve bought the property the business has commenced
Any thoughts would be appreciated!