I would like to know if any tax losses from rental properties can be offset against an individual’s income.

In New Zealand you can set up what is known as a ‘loss attributing qualifying company’ and any loss can be offset against a person’s salary and wages.  Losses are normal when the property is first purchased due to high debt and interest costs and deprecation charges.

Is there any structure similar in the UK that enables losses to be personally transferred to an individual?

Arthur Says

If a) the property is personally owned (i.e. not owned by a company or trust), and b) the losses are income losses (i.e. not capital losses that came about through selling the property), and c) the losses did not come about through excess capital allowances, then they are normally set against rental income in the same tax year from other personally owned property, or carried forward to set against rental income in future years.

They cannot be set against personal income from other sources.

About Arthur Weller

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Arthur Weller is a Chartered Tax Advisor (CTA) and an integral part of the Property Tax Portal team. He offers a special rate tax advisory service on any aspect of UK taxation, including property taxation, for as little as £97 for a 30 minute telephone tax consultation.

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