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UK Property Tax Q&AOffseting Property Losses Against The Interest From Savings Accounts!
Offseting Property Losses Against The Interest From Savings Accounts!
Question
My daughter bought a property which she lets out. It is making a loss after accounting for interest on the buy to let mortgage used for buying the property. She does, however, have deposits in saving accounts. Can she offset the loss on property against the interest she is receiving from the savings accounts?
My daughter bought a property which she lets out. It is making a loss after accounting for interest on the buy to let mortgage used for buying the property. She does, however, have deposits in saving accounts. Can she offset the loss on property against the interest she is receiving from the savings accounts?
James says:
No - the only rental losses that can be deducted from other types of income are losses on letting "furnished holiday accommodation". Your daughter's losses are carried forward and can be set against any future profits from letting the property concerned, or any other property.
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