Rental and tax

[peasinapod2]

Has anyone got advice for the following, please.
A tenant vacate a property on 31 March.
The LL has to spent money to get the property
Into a condition to sell. Can the LL use the rental income received up until 31st March although the actually spending on improvements takes place in the following tax year? Thank you

If the LL is submitting Tax Returns, they can put any date for their year end, it doesn’t have to be 31 March. When completing Tax Return the figures used should be costs incurred up to that date, but also depends on when the repairs were carried out and paid for. Inland Revenue may ask to see receipts/invoices for work carried out.

There are limitations on what costs can be offset. Improvements rather than maintenance are not allowed, for example. You are liable for income tax on the rent for the tax year in which it is earned.

I suspect OP is talking about things like decoration, not capital improvements.

Assuming your year end date is April 5th…

If your tenant moved out March 31st 2024 and you have not rented it since then… last years rental profit is last years rental profit. You can’t offset this years expenditure/loss to last years accounts. Do you not have an accountant?

It sounds like you need one and might get into trouble with the tax man without one as this is basic stuff.

Thanks all.

Yes, this is about post-tenant repairs/spending on carpets, paint, etc.

I do have an accountant and am always make
Sure things are done properly.

I posted here for general info as I'm debating my options post tenancy.