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TEAP007, Tax Preparer
Category: UK Tax
Satisfied Customers: 760
Experience:  Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years
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How can I offset my rental property losses against other i

Customer Question

How can I offset my rental property losses against other income?
Submitted: 7 years ago.
Category: UK Tax
Expert:  TEAP007 replied 7 years ago.

if your rental looses are from residential letting then they are only able to be set off against other letting profits of the tax year or carried forward against letting profits in future yearsprofits.


If your losses were created by capital allowances then these can be set off against the landlords other income of the tax year and the tax year next following on


Of course if your letting was Furnished Holiday lettings (and you would know if they were that ) the losses would automatically be able to be set off against the landlords other income of the tax year and any surplus to the previous year


Customer: replied 7 years ago.
I own premises that are let to a business but in the current economic climate, by agreement, I have currently bben receiving no rent.

I still have to pay the mortgage on the premises out of personal income. I want to know if there is some way I can offset the effective rental loss against my personal income. I do own another ltd company and it has been suggested to me that there would be a way of using that.
Expert:  TEAP007 replied 7 years ago.

If the business is your own then any agreement not to take rent is liable to be viewed as uncommercial and let at less than market value so that the looses would not even be set offable (if there is such a word) against other property profits for the year let alone your other income.


Putting property into a ltd company is not something I would recommend as to get it (or the subsequent gains) out requires Capital gains Tax within the company and then CGT on your individual basis

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