Sign up to get our free landlord tax strategies


To receive our seven FREE landlord tax saving strategies just simply complete the form below and the first strategy will be emailed to you immediately.

Sign up to get our free landlord tax strategies

Thank You!

Seven FREE property tax busting strategies reveal the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Can I offset property losses against my other earned income?

Question

I have bought a property to let out and it is possible in the 1st and maybe 2nd year I will make a loss after accounting for Mortgage Interest and loan interest used to get a deposit, and Insurances. Can I offset that loss against my earnings from employment during the same period? If so which IR form do I need to use?

 

Arthur Says

The answer is ‘no’, the losses cannot be offset against your employment income. However they can be carried forward and offset against future rental income profits that are generated from the property business.

 

If you have been making losses then it is important that you register these losses with the Inland Revenue. The reason for this is because any losses can be carried forward and offset against future profits.

 

Therefore for example, if in one tax year you made a £1,000 loss and then the following year you made a £1,000 profit then there is not tax liability as the £1,000 loss has been carried forward and wipes-out your future gain!

 

However if you have any other properties that are being rented out in the same tax year, at a profit, then the loss from the loss-making property can be set off against the profit from the profit-making property.

 

Case Study

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