”Available For Rent” vs “Used For Private Purposes”

Q&A Tax

Question :

Mr. C advertises his holiday rental all year-round, all conditions of the listing seem to suggest available
for rent. If, however the property has not been rented by the Friday, Mr. C may go and stay there on

Can the property be classified as both “available for rent” and “private.”?

Is it a case of the property automatically being private when they stay there, although weekend was
available for rent all year? Or can Mr. C still make a claim for that weekend?


Answer :

Actual private use overrides the fact that the property might be genuinely available for rent.

Normally it is possible to claim deductions in relation to a property if it is actually being rented out or
it is genuinely available for rent. However, if someone is using the property themselves then this would
prevent any deductions from being claimed even for that period if the property is genuinely available
for rent at that time.

This is because even though the property might be held out for income producing use, section 8-1
prevents a deduction from being claimed if the expense is private in nature, even if there is a
connection with deriving income.

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