UK Tax

UK Tax Questions? Ask a UK Tax Advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

UK Tax
This answer was rated:

I have a limited company for doing contract work in consultancy

and we also operate 2...
I have a limited company for doing contract work in consultancy and we also operate 2 sets of holiday lets, both of which make a loss. In 2011 the UK government stopped the practice of offsetting the losses of one business against the profits of another. I have now retired and was unaware of this until I just got a tax bill for £13,000 for my final year's consulting business. I asked our accountants if I couldn't put the holiday lets under the consulting company and they said "no". Is there any way of reducing the tax bill?
Many thanks
Show More
Show Less
Ask Your Own UK Tax Question
Answered in 4 hours by:
4/7/2013
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15,950
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
Verified
Hi.

You say you are retired but that you have a limited company. Does the company still trade? Are the holiday lets owned by you personally or by a limited company? Are they UK lets or foreign lets? How have the losses from the lets been dealt with in the past?
Ask Your Own UK Tax Question
Customer reply replied 4 years ago

Hi - the company is still available to trade but I hadn't expected to do any more consulting work. The holiday lets (one in UK, one in France) do not currently come under the company but I was wondering if it would be better (and possible) for them to do so..... They are owned by my husband and me. In the past, the holiday lets have had their own accounts done, separately from the company. Until 2011, UK tax law allowed the losses from the holiday lets to be offset against my consulting income, but I am told that can no longer happen. However, if they were owned by the company, I wonder if it would be different?


Thanks

Thanks.

Leave this with me while I draft my answer.
Ask Your Own UK Tax Question
Hi again.

If you transfer the properties into your limited company, the "disposal" may give rise to Capital Gains Tax liabilities for you and your husband.

The only way that property let losses can be offset against other limited company income is if they are not furnished holiday lets but regular residential lettings. The loss relief restrictions that apply to individuals apply to limited companies too.

The losses you have accrued cannot be used by the company that you put the properties into. You would be deemed to have ended your furnished holiday let business as a personal business. In your case, if you retain personal ownership of the properties, the losses can only be offset against future profits from the same source, ie a loss on the UK let cannot be used against a French let.

Take a look at HS253 which explains the new rules for furnished holiday lets.

I hope this helps but let me know if you have any further questions.
Ask Your Own UK Tax Question
Customer reply replied 4 years ago

Hi - I've read this several times (and also the HS253 guidance) and I still don't really understand. Are you saying I CAN'T put the properties into my consulting company, or that it would be unwise (because of capital gains - but I don't think I'm worried about that) or that if I DID put them in the company, they would still be treated separately for tax, so I couldn't net the consultancy profits against the holiday let losses?


Sorry if I'm being a bit slow on the uptake.....


Thanks - Gill

If you put them in the company any losses from furnished holiday lets would not be deductible from other trading profits. Take a look here for confirmation.
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15,950
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
Verified
Tony Tax and 87 other UK Tax Specialists are ready to help you
Ask your own question now
Ask Tony Tax Your Own Question
Tony Tax
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15,950
15,950 Satisfied Customers
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.

Tony Tax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

6,512 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

868 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

148 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
Second opinion] If my only income is state pension and
Second opinion] Hi If my only income is state pension and rental income from property, can I claim marriage allowance from my wife as I am not employed or self employed but still complete a tax return… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
Im trying to do my micro entity accounts submission and cant
hi.....im trying to do my micro entity accounts submission and cant work out where Im going wrong … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
I've been claiming working and child tax credits for over
Hi I've been claiming working and child tax credits for over two years now. I live in rented accommodation which is in my daughters dads name. My ex partner name is ***** ***** tenancy which hasn't be… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I am buying and selling tickets. I have no other income. I
Hi,I am buying and selling tickets. I have no other income.I purchase tickets from a primary seller or from the promoter directly then resell on secondary platforms such as viagogo and stubhub. Such p… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,068 satisfied customers
I've just electronically filed my 2016-17 UK tax return. I
I've just electronically filed my 2016-17 UK tax return. I owe about £540 and have elected for it NOT to be collected through my wages. This is a dumb question, but what happens next? Does the HMRC se… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I need assistance with my micro entity statement. I get the
I need assistance with my micro entity statement. I get the following error when I try to submit the form Current period: Shareholders' funds must be equal to the total net assets (liabilities) … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,068 satisfied customers
I m interested in finding out about the extra statutory tax
Hi, I m interested in finding out about the extra statutory tax consession A 10. I was resident overseas from 2000 to 2015 and could only contribute to my overseas company savings plan (6% from me and… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
Could someone tell me about the married persons tax
Could someone tell me about the married persons tax allowance .I saw tonight on the money saving expert programme ,if you do not pay tax ,and your husband does ,you can claim for some kind of tax reli… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
My husband received a payment last year from an employment
My husband received a payment last year from an employment benefit trust based in Jersey. Tax was paid over to the Revenue. Where should he put this on his return he had left the companies employment … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
I am trying to file Ltd Company micro-entity accounts with
Hi, I am trying to file Ltd Company micro-entity accounts with Companies house and i keep getting the error message "shareholders funds must be equal to the total net assets (liabilities). We are a ve… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,068 satisfied customers
I am requesting to my 10/19/2011 question: I'll be 65 in
Hi, I am requesting a follow up to my 10/19/2011 question: I'll be 65 in March 2012 and am probably going to get a Original Question URL: http://www.justanswer.com/uk-tax/5phxe-i-ll-65-march-2012-prob… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I'm doing the accounts for my sister who owns a micro entity
Hi Pearl, My name is ***** ***** I'm doing the accounts for my sister who owns a micro entity business company. Last year was the first accounting year and I laid an abrieved.online account. I'm about… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
I have a UK/Australia tax question not social security. I
I have a UK/Australia tax question not social security … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
You recently (Nov 16th) answered questions in relation to
You recently (Nov 16th) answered questions in relation to CGT on the sale of a holiday home in France, for which many thanks. I do have a few more specific questions re. other allowable costs. These a… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,068 satisfied customers
My father and step mother are both in separate care homes.
My father and step mother are both in separate care homes. They jointly own a house. My father has a state and occupational pension both of which are considered as sole his income by the local authori… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,068 satisfied customers
I wanted to know if a uk limited company could lend me
I wanted to know if a uk limited company could lend me monies to purchase a property. I am not a director of the company … read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I don't have a social security question. I have a micro
I don't have a social security question. I have a micro entity account question. … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,068 satisfied customers
I have been sent a letter from the tax - it seems my
I have been sent a letter from the tax - it seems my accountant has declared more subbies working for me than actually did, despite the fact that I sent off my subbies tax deductions every month after… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x