This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Enrol now on the free landlord tax strategies course

To enrol in the 7 tax saving strategies email course complete the form below. The first module will be emailed to you immediately.

Enrol now on the free landlord tax strategies course

Thank You!

Free Tax Saving Strategies Course
The seven FREE property tax busting strategies course reveals the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Carrying forward and offsetting property losses

Question Can I offset rental income loses against future rental income or the capital gain?

Also, how long can I hold onto the losses for? For example if I sell a property with a rental income loss but buy another several years later, can I still take across any rental losses?

Ian Says
Here are some pointers for consideration:

Commercial Properties

Rental income losses can only be offset against rental income profits of the same or the following year. The rentals must be on a commercial basis with a view to profit.

Any peppercorn rents and the losses arising on these are ignored for this purpose.

In practice if you have a number of properties all rented out on a commercial basis then the results are amalgamated to form your rental profit or loss.

Residential Properties

Rental income losses can not be offset against CGT or any other form of income unless they arise from furnished holiday lettings, which are treated differently for income tax purposes.

These losses can be offset against other income.

Rental losses incurred from overseas properties can only be offset against profits arising on the same properties in future years.

How far Forward?

The question of how far forward you can carry rental losses is a tricky one, where you have stopped renting for several years and then recommence.

Intention is key here!

If it was your intention when selling the old rental property to purchase another one and rent it out, but didn't do so until several years later, then provided you can prove the intention then the Revenue may allow the carry forward of the loss to be set against the profits arising on the new property, provided they were both on similar terms.

In other cases the rental losses may be lost when the rental income stops. It is really a question of how long between the rentals and intention as to whether the Revenue will allow the loss to be used.

Landlord Tax Secrets Get our SEVEN FREE Landlord Tax Saving Strategies - Guaranteed To Slash Your Property Tax Bills!
Click here for more.

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question