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Accounting for UK property losses from previous years

13/12/2018 08:06:48
Hello,
When I first started out renting property I made a few losses that I have been able to carry forward to offset against the profits I now make. Up until this years return I was able to enter the total amount for losses carried forward. This year, however, it appears that I am only able to enter an amount up to this year's profit figure. Figures for example purposes only (not real figures). Loss last year carried fwd £10k (box 43 from 2016-2017), profit this year £6k (box 3. I was expecting to be able to enter 10k in box 39 but am only able to enter up to £6k. Please advise how to account for the remaining £4k?
Thanks you
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Re:Accounting for UK property losses from previous years

13/12/2018 10:22:59
Hi,

There is an issue with online system in relation to income from property losses carried forward.

In the box for losses brought forward and used against this years profit you will enter the amount of loss to equal the profit of the year, the balance of the losses are still available to carry forward and can be entered in the any other information for other property income box.

I hope this helps.
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Accounting for UK property losses from previous years

14/12/2018 07:29:37
Thanks for the clarification. Yes, it answers my question
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Accounting for UK property losses from previous years

31/12/2018 08:19:29
Thanks very much. Yes, this answers my question
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Accounting for UK property losses from previous years

25/01/2019 17:13:02
I am having the exact same problem and am not sure how this solution helps! I understand what it says but when I follow the steps and when I get the checking stage the information says that I did NOT claim an allowable loss. I'm concerned because i do have a loss to carry forward its just not showing because I have not been allowed to enter my actual loss into any of the boxes that do the calculations. Should I submit a return that does not show the losses I am carrying forward???? Any help at all greatly appreciated at this stage!
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Re:Accounting for UK property losses from previous years

26/01/2019 09:05:44
Hi,

Thank you for your question.

As stated in the answer to the previous question you should show the rental income you received and expenses incurred. You should then enter in the Box "Loss brought forward used against this year’s profits" the same amount as your net rental income which will then reduce your profit to nil.

The balance of any losses brought forward and not utilised can then be carried forward to the following year. This amount should be entered in the "Any other information for other property income" box.

I hope this helps
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Accounting for UK property losses from previous years

27/01/2019 09:20:44
Hi

I have had exactly the same problem. I do not understand why HMRC have changed the format of the property income section this year, as in previous years there hasn't been a problem. Please can you amend the on-line form for next year to remove this issue??!
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Re:Accounting for UK property losses from previous years

28/01/2019 11:43:49
Hi,

I'm sorry you do not like the new format. At the moment, there are no plans to change this for next year.

Thank you for your feedback.
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Accounting for UK property losses from previous years

29/01/2019 10:26:45
Third party software doesn't have this problem.
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Accounting for UK property losses from previous years

29/01/2019 10:26:45
Can you please advice where is this BOX?
can be entered in the "any other information for other property" income box.
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Re:Accounting for UK property losses from previous years

29/01/2019 12:12:36
Thanks for your question.

The 'any other information' box is the very last box on the UK property section.

I hope this helps.
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Accounting for UK property losses from previous years

29/01/2019 16:59:37
I think you need to look into changing this for next years form, the new format is broken! Especially if third party software does not have this problem, why does the normal joe blogs have to encounter this issue every year when it previously worked just fine? Who in their right mind doesn't want to see a clear figure of the exact losses they are carrying over calculated in a nice box on their return just as it always has been in previous years. We are allowed to carry losses over we should be allowed to put them into a box, we shouldn't have to type them into an any other information box making more work for somebody who has to read and recalculate(hopefully!!!).
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Re:Accounting for UK property losses from previous years

29/01/2019 17:04:18
Hi,

Thank you for your feedback.

At present there are no plans to change the current format but we will pass on your concerns to the relevant team.
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Accounting for UK property losses from previous years

09/05/2019 10:40:44
It appears that this issue still exists in the 2018/19 tax year. 20 minutes on the phone to HMRC, passed from pillar to post and eventually told to call the number I had dialed anyway but nobody said "this is a known issue" - one person did suggest that perhaps you cannot carry a loss forwards!

Even if you cannot change the box, how about changing the help notes to say to enter any unused carried forward loss into the any other information box rather than box 43 if you're doing your tax return online.
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Re:Accounting for UK property losses from previous years

09/05/2019 12:09:01
Hi

Thanks for your comment.

We are aware that there is still a problem with the loss to carry forward box on the Property Income section. I can assure you that you can carry forward unused losses.

We are taking action with our service provider to try to change the help notes to improve the process for all our customers.

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