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Ending renting property out

25/04/2019 15:08:26
I have stopped renting property out in 2018/19 tax year, and have made a ‘loss’ due to the costs of maintains property whilst attempting to sell the property. How do I offset this loss against my personal tax?
I have inputted the figures in the tax form but it only seems to allow me to carry the loss forward - there won’t be any propertyincome next year.
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Re:Ending renting property out

26/04/2019 14:41:56
Hi,

Unfortunately property business losses can only be set off against profits from the same property business. They can’t be carried forward after the property business ceases.

Where, after an interval, an individual starts a new property business, they can’t deduct losses that arose from their old property business.

Whether a rental business has stopped and a new business started depends on the circumstances of each case.

Property business losses can only be carried forward against losses of the same property business and can’t be carried forward to use against general income in the year of the loss or in any later year.

Please see our guidance here:

PIM4210

Thanks for your question.

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Ending renting property out

13/06/2019 08:24:06
I won't have any profits in subsequent years as I have sold the property. In the previous years I made a profit and had to pay tax on it. Why can I not offset the loss against my overall income - you add the property rental income to my PAYE income usually.
Can I offset it against previous years profits?
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Ending renting property out

13/06/2019 14:52:22
The costs of maintaining the property after the letting has ceased are not allowable. They are only allowable if the property is subsequently re-let. That having been said, losses cannot be set against other income or carried back.
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Re:Ending renting property out

13/06/2019 15:36:50
Hi,

Thanks for your question.

Property business losses cannot be carried back against profits for an earlier year, or set against general income except in exceptional circumstances, detailed in PIM4220. They can only be carried forward against profits from the same property business.

Please see the attached guidance regarding losses.

PIM 4205

I hope this helps.

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