Can rental losses be carried forward?
Question My daughter has property rental losses that were carried forward from the tax year 2016/17. Can she use them to offset against her property rental income for the tax year 2017/18? I ask this because she was unable to enter last year’s loss carried forward figure on to her online tax return when she completed it.
Arthur Weller replies:
It is not clear from the question what the difficulty was. However, the rules state that a rental loss is carried forward automatically, without the necessity to make a claim, and the loss must be used against the rental profits from the first available tax year after the year of loss. See HMRC’s Property Income manual at www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4210.
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