Yes. A void between tenants does not stop you claiming genuine running costs, as long as the property is being marketed or prepared for letting. Insurance, utilities, agent fees and repairs remain allowable. Improvements are capital, and a long empty spell with no plan to re-let puts the deduction at risk.
What you can claim during a void
- Landlord insurance, ground rent and service charge.
- Council tax and utilities you pay while it is empty.
- Agent and advertising fees to find the next tenant.
- Cleaning, redecoration and repairs that put the property back to its previous condition.
Mortgage interest
An individual landlord cannot deduct mortgage interest from rent. Instead there is a 20% tax credit on residential finance costs, and it still applies through a void because the interest is still being paid. A limited company deducts interest in full.
Repairs or improvements
Putting things back to how they were is a repair and is deducted from rent. Replacing a worn-out carpet or appliance with a similar one is normally fine too. Adding something new, such as an extension or turning a box room into a bedroom, is a capital improvement. It is not deducted from rent, but it can reduce a Capital Gains Tax bill when you sell.
When a void goes on too long
The property has to remain part of your letting business. If it is empty with no marketing, being renovated for sale, or used by you or your family, the letting may have stopped and the deductions can go with it.
Worked example
A Hove flat let at £1,250 a month is empty for two months. You pay £45 insurance, £110 utilities, £600 to the agent for a new tenant, £90 for cleaning, £520 to repaint and £680 to replace a worn carpet. All six are allowable, £2,045 in total.
If you also spend £6,500 turning the box room into a bedroom, that £6,500 is an improvement. It is not deducted from your rent.
What to do
- Keep dated evidence that the property was advertised or with an agent.
- Ask contractors to split invoices between repairs and improvements.
- Record the start and end date of every void.
- If a void runs past a few months, ask us before you claim.
Common mistakes
- Claiming a full refurbishment as a repair.
- Deducting mortgage interest in full on a personal return.
- Leaving a flat empty with no proof you were trying to let it.
Frequently asked questions
Speak to James Fitzpatrick — free consultation
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