Thought it might be easier to bump this old thread rather than start a new one.
I'm pretty sure Revenue use the "uneconomic letting" rule as anti-avoidance to stop people letting at below market rent value to relatives etc.
But, I have a loss for the last tax years because my apartment was vacant for 9 mths. I'm I right in thinking that Revenue allow expenses between two lettings in full ? I didn't occupy it and was actively seeking a new tenant.
For example, I let the property for 12 mths on 2011 at a profit. In 2012, say, it was vacant for July to Mar 2013 (and re let successfully from March 2013 onwards).
Now I have a full years insurance, Mortgage Interest etc which exceed my Gross Rents for 2012. My reading of the rule is that expenses incurred between lettings are deductible (as opposed to most pre-letting exps)
I presume this could not be considered an "uneconomic letting" ? and it is ok to claim the loss (it will return to profit for 2013)