Re: Tax return: property expenditure without income?

Many thanks!

mjt95 wrote:
I'm doing my tax return.

During the year ending 5 April 2007, I purchased a property but unfortunately have no tenant!

It is my first investment property. I have received no rental income from it at all during the tax year.

I have incurred mortgage interest relating directly to the property and a few minor expenses unrelated to the acquisition of the property, i.e. allowable expenses.

I know that HMRC will not consider my business having started without rental income.

But what do I do with my tax return?

A) Declare the expenses in 2007's return, creating a loss c/f, even though there is no income?

B) Declare the expenses in 2008's return, offsetting them against the tax year in which rental income first arises (and still creating a loss c/f, resulting from <1yr of rental income against >1yr of mortgage interest payments)?

If A), should I note as such on the additional information pages, or just leave it as it?

Thanks in advance!



--

mjt

A supporter of http://www.taxpayersalliance.com/, fighting to stop the government ripping off the taxpayer.

Tax cuts v public services? No! Tax cuts *for* better public services.
.

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