Question:
Could you tell me more about interest costs on a buy to let property prior to the first tenancy? I had assumed they would be allowable as pre-trading expenditure?
Arthur Weller Replies:
Please see page PIM2505
(http://www.hmrc.gov.uk/manuals/pimmanual/pim2505.htm) in the ‘Property Income Manual’ on HMRC’s website. If the allowable expenditure occurred within 7 years of the first tenancy, then it can be claimed from the date the first tenancy begins.
