Because property development is a trade, if you make a loss in any tax year, you can set this loss against any other income you may have for that year (salary, investment income, pension, and so on), and claim a tax repayment.

In the case of losses at the beginning or end of your trading enterprise, the loss can be carried back to earlier years.

The detailed calculation of a loss for tax purposes, and how to set it off against other income, can be extremely complicated – take professional advice if you are in this situation.

This entry was posted on Friday, September 19th, 2008 at 12:38 pm and is filed under Property Companies, Property Income Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.