One option in the latest Majolikova Post Buying Strategy Reportis to Hold but not rent out. If I took this option I would have no income from the units but I would have some ongoing costs. Can I include these costs when I calculate my profits from my other UK properties for tax purposes?

Hi Nick, What would be the advantages of holding but not renting out? In other words, how renting could be a disadvantage? Erico

Hi Nick - my understanding is that you can deduct costs - so long as you elect for that form of accounting. In Poland - you can have two types of accounting - either a % on revenue - or a income minus costs = profit - which is then taxed form of accounting. Cheers Neil

Enrico As I see it the advantages of holding but not letting out are: Continued capital growth but no need to fit kitchen and furnish (saving immediate cost of £4.5-£5k on a small flat) No monthly fee to managing agent (>£50/month on small flat) Disadvantages are: No income!! Continued cost of borrowings Cost of service charge (£ not known) and any utility usage If you assume that the kitchen + furniture comes to 5k and you write it off over a 5 year period then you need a contribution from rent of £83/month (£1k/year)to make it worthwhile to fit out and rent. The gross rent on one of my 37.5sq meter flats@ 20pln/sqm will be less than £130/month. Rednet will charge me approx £53/month to manage the flat. Tenant finding add another £13 (one months rent/year + vat) leaving me with only £64 towards my £83 kitchen and furniture cost. It is the Service Charge that makes or breaks it. Assuming the tenant covers this if occupied and the landlord covers it if vacant then any charge of more than £19/month means I am better off letting. However against this is the risk of incurring Rednet's management charge and then not being able to let. That way I increase my monthly cost by £53. Any corrections to this would be very welcome.

Neil Thanks. I'll take the tax advice offered with the LCS/PLS service to figure out which of the two is preferable in my circumstances. Nick