Claim for investment property that is not completed?

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dubinamerica

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Hi
Looking over tax return form for year 2005. Can I claim tax relief on interest and expenses on an investment property that was 'purchased' (i.e. closed) in year 2004 and that we drew down stage payment in year 2005? Property is not complete as of yet but as we are already paying for it can I put that down?
Obviously we would not be claiming on the section 23 relief at the minute but I was wondering if the interest would be deductible.
Any info would be appreciated !
 
As far as I know pre letting expenses are not deductible against rental income in case that's what you mean?
 
dubinamerica said:
Hi
Looking over tax return form for year 2005. Can I claim tax relief on interest and expenses on an investment property that was 'purchased' (i.e. closed) in year 2004 and that we drew down stage payment in year 2005? Property is not complete as of yet but as we are already paying for it can I put that down?
Obviously we would not be claiming on the section 23 relief at the minute but I was wondering if the interest would be deductible.
Any info would be appreciated !
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Generally, no, you cannot claim a deduction for a property thats not rented out yet - pre letting. You may however let the interest roll up and claim it when on a letting. I assume you have other rental income to shelter otherwise your question would not make any sense.
 
two properties . one complete with tenant and the other still being built but we have paid out deposit + stage payment + insurance although it's not complete.
so do we just miss out on getting relief for the interest paid already? It was mentioned above that we could rollthis over - can I just add up all the interest paid and then submit this as an expense the year that the property is rented?
 
dubinamerica, I wouldn't take the rolling-up of interest until first letting as gospel, unless you get it confirmed or clarified. Sounds iffy to me .......
 
In my opinion, even if you let the interest roll-up, the portion that relates to the preletting period is not allowable.
 
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