My tenant left in June 2024 and then I undertook repairs and updates, ready to advertise for a new one. The house was empty all this time. In October 2024, my situation changed, so that I had to sell the property, which I did in December 2024. Can the expenses incurred during this period be offset against income for the tax year 2024/25? 

Arthur Weller replies:  

In the period June–October 2024 (void letting period, but attempting to let out): repairs and maintenance wholly and exclusively for the rental business are revenue expenses and fully deductible against your property income for 2024/25. See HMRC’s Property Income Manual at PIM2052 regarding the expense of interest for a landlord: ‘genuinely trying to let out a property, but it is empty because they have not been able to find a tenant. In this case, the interest will meet the ‘wholly and exclusively’ test.’ Post-decision to sell (from October 2024): Once you cease the letting business, subsequent costs are capital in nature - they cannot be deducted against rental income.