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2007 tax return

Hi,
any advice would be appreciated.

I purchased a BTL property in September 2006, at roughly the same time I moved out of my residential property to a rented one in my new place of work. Effectively I am letting two properties out. I asked some friends of mine if I needed to file a tax return if I was making a loss. The reply was that I did not have to. I now know that I do need to complete tax returns and did so for the deadline this year. My question is, how do I go about completing a tax return for the previous year? I should have completed one for the financial year 2006/2007. Will HMRC penalise me for not completing it on-time? or will I be OK because I made a loss? I honestly thought that I did not need to complete one due making a loss.

many thanks

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    The penalty for making a late return can never be more than the tax due. So, if you have made a loss and there is no tax due, there will be no penalty.
    £705,000 raised by client groups in the past 18 mths :beer:
  • ceeforcat
    ceeforcat Posts: 1,131 Forumite
    Would it also be the case that you have to amend your 2008 tax return in view of the fact that you would not have carried forward the loss from 2007?
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