Rental expenses span tax year

[rfisher]

I'm renting my house out.

It's not likely to have its first tenants until after April 5th 2010.

I've already spent money on it (decorating, epc, gas and electric safety).

Can I offset these expenses in my 2009 tax return or in next years return?

[Eric Mc]

You have two options

a) Prepare the rental income and expenditure details for 2008/009 which will show a losss for 2008/09. Cary this loss forward to 2009/10 so that it can be deducted from the rental profit that will be generated in 2009/10.

b) Don't bother making a rental return for 2008/09 and just add the expenses that were incurred in 2008/09 onto the 2009/10 expenses, thereby showing a smaller loss for 2009/10.

Technically, option a) is the correct way to do it.

[rfisher]

Thanks Eric - you're a star.

Seems simpler to carry it over as long as HMRC are OK with that.

Saves me doing a tax return this year as well.