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Expenses incurred in last tax year. Rent in new tax year.

Started by Rob_God, December 01, 2021, 02:06:46 PM

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Hi Guys, New to being a landlord, so seeking some advice please on our situation

We incurred ~£3k expenses in Feb / March of 2021 all prior to the tenants moving in. I've convinced myself these are allowable expenses.

Our tenants moved in on the 30th March; which i gather is the date the expenditure would be deemed to have been incurred on the first day of let.

Unfortunately this is only a day or so before the tax year end; and we haven't 'accrued' any rent yet; to offset the costs against.

Any ideas on whether we are able to include for these expenses in tax year 2020/21; despite only 2 days worth of income !

Hope this makes sense and someone can point us in the right direction please.

Thanks  !



I might be wrong but since no one else has replied I'll give it a go. The expenses you mentioned are feb-march so they are deemed to have been incurred then rather then when your tenants moved in.

I'm not sure if it counts as 2 days worth of income either. I may have been doing it wrong but I based my income based on when I actually received it rather then for the period it covered

If you make a loss in one financial year, you can carry that over as decisions in the following few years


It depends how you account for the income and expenses, the cash method (things occur when they occur) or the accrual method (which is more like how a company accounts for things).
If you're using the case basis, the costs are incurred on the first day of the first tenancy (you're right about that), which creates a loss to carry forward into the next tax year.