Tax return query

ccluedo

Hi, wondering if someone could advise me on the "Have you made any income tax losses in the year 2009-2010" question on my tax return pls.
I really only have income from a property I rent out and in that tax year I had to do major repairs which totalled far in excess of any rental gained. Do I answer YES to the above question then? :question:
(I have simply put the rental income and all expenses in the appropriate places.)
Thanks

chrismac1

Which box are you referring to, please? I've looked up the returns of 2 clients who both have property losses for 09-10 and can't find this specific question.

Moving on, the most important thing to bear in mind is that unless yours is a Furnished Holiday Let you cannot offset the loss against other income in the year - only future rental profits. Also, make good notes regarding the nature of the repairs as this is a potential risk area. It's important they are repairs and not enhancements to the property. So for example, repairing the leaky roof and poor tiles on it - repairs so claimable. At the same time adding a conservatory to the property = capital - not claimable until you sell up when it will reduce any Capital Gains Tax bill.

ccluedo

chrismac1 wrote: »

Which box are you referring to, please? I've looked up the returns of 2 clients who both have property losses for 09-10 and can't find this specific question.

Moving on, the most important thing to bear in mind is that unless yours is a Furnished Holiday Let you cannot offset the loss against other income in the year - only future rental profits. Also, make good notes regarding the nature of the repairs as this is a potential risk area. It's important they are repairs and not enhancements to the property. So for example, repairing the leaky roof and poor tiles on it - repairs so claimable. At the same time adding a conservatory to the property = capital - not claimable until you sell up when it will reduce any Capital Gains Tax bill.

Hi Chris, it is in Section 3 online, Tailor your Return (page 2 of 3).

Re the other info u kindly provided I have checked that the major repairs are all claimable as expenses.

Thanks for your help thus far

EDIT: The more I think about it, I realise my answer must be YES. My rental expenses were far in excess of my rental income for the tax year.

chrismac1

After much pratting about on the useless HMRC website (I use commercial software to file all my returns as it's about 10 times faster) we get to this:

"• you have made a loss in your trade, profession or vocation (hereafter
shortened to trade), or
• you are entitled to a share of the loss made by a partnership of which you
are a member"

So in my view the answer to the question is No. Anyway, the key thing is that your loss is carried forward to 2010-11 tax year and not offset against your other income for 09-10.