Can I offset pensionable income against property profits?
Question In your book Pay Less Property Tax 2006 on page 43 you state that it is possible to offset rental loss on holiday lets against any other income. Does this include pensionable income on which I pay 22% tax?
I assume that 'pesionable income' means income from a pension scheme. If so, the answer is yes. Losses from qualifying furnished holiday lettings are treated as trading losses (ICTA 1988 sec 503), and under ICTA 1988 sec 380 can be offset against total income of the tax year.
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