Taxable loss and property on rented residential property

Sterlingtimes

I have rented one property out to various tenants over a number of years. By accounting for mortgage interest on the property I have declared a taxable losses on the property rental.

When I retire, I will move into taxable profit after clearing the mortgage.

Will I then be able to go back to the start of the letting and offset all losses for all previous nine years against profits as they arise?

antrobus

Sterlingtimes wrote: »

....Will I then be able to go back to the start of the letting and offset all losses for all previous nine years against profits as they arise?

Yes, there appears to be no time limit to c/f of loss relief on a rental business. So long as it's the same rental business.

PIM4210 - Losses: set against future profits (IT)
http://www.hmrc.gov.uk/manuals/pimmanual/PIM4210.htm

Sterlingtimes

Thank you, antrobus, for your quick reply. That is what I thought having Googled extensively. I thought that there could be a limit but cannot find one. This is good news for me since I should remain tax free for a few years after retirement on the rental income.

jimmo

Sterlingtimes wrote: »

I have declared a taxable losses on the property rental.

If you mean that you have been submitting annual, self assessment tax returns then each year you should have declared:
the total losses brought forward from earlier years,
The losses for the Return year and
The total losses carried forward to the following year.
As long as you have done that you will be fine.
If not, there is a time limit for claiming losses which you may need to be wary of but, once claimed, losses can be carried forward indefinitely until they can be utilised.

Dave_the_Ginger_Cat

I've been carrying forward losses for years on the basis of declaring them on my SA due to some fairly hefty repairs and a corresponding period when it was not occupied