Setting of loan interest against property never rented

[Sandi]

I own three properties that I have had since March 2002 and are making profits. I have one property that I purchased with a friend in Sept 03 and tried but failed to rent out. We then sold the property in Sept 04.

What I need to know is whether we are able to offset my share of the interest paid on the property that I was trying but failed to rent out against the profits made from my other properties.

Any help would be much appreciated!

[Tax Accountant]

Property Rental is now called 'letting business' and profit is calculated according to the rules applicable to businesses.

If the property was clearly available and fit for letting, it has already entered your lettings business. I assume you will also have incurred other expenses on top of the loan interest and that you will be able to satisfy the Inland Revenue if necessary.

In that case, you will be able to claim your share of the losses on the last property against your share of the profits from the earlier properties.

Ramnik