Btl tax

Roysee

Hello
Can tax losses on rental property be thrown back against previous year profits

I have two btl properties and last year made a profit for the first time and after deducting previous years losses I was still in profit and paid tax on those profits.
This year however due to various factors I have made a loss. My question is can this loss be thrown back against last years profits and therefore reclaim some or even all of the tax I had to pay?

3card

Roysee wrote: »

Hello
Can tax losses on rental property be thrown back against previous year profits

I have two btl properties and last year made a profit for the first time and after deducting previous years losses I was still in profit and paid tax on those profits.
This year however due to various factors I have made a loss. My question is can this loss be thrown back against last years profits and therefore reclaim some or even all of the tax I had to pay?

Last year was my 1st year and I made a loss so I asked if I could carry any of those losses over to this tax year and my accountant told me you can't do that so I would resume it would work the other way too??

sheramber

Roysee wrote: »

Hello
Can tax losses on rental property be thrown back against previous year profits

I have two btl properties and last year made a profit for the first time and after deducting previous years losses I was still in profit and paid tax on those profits.
This year however due to various factors I have made a loss. My question is can this loss be thrown back against last years profits and therefore reclaim some or even all of the tax I had to pay?

Property losses cannot be carried back.They can be carried forward to set off against future profit from the same property business

BoGoF

You can't carry the losses back. Generally speaking they can only be carried forward and set against future profits of the same rental business

00ec25

3card wrote: »

Last year was my 1st year and I made a loss so I asked if I could carry any of those losses over to this tax year and my accountant told me you can't do that so I would resume it would work the other way too??

is your "accountant" qualified? If they are then report them to their professional body for incompetence

that is quite possibly the worse bit of advice I've ever heard being given in the context of rental losses

the only thing you can do with rental losses is to carry them forward against future profits (in the same rental business)

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4210

Crashy_Time

sheramber wrote: »

Property losses cannot be carried back.They can be carried forward to set off against future profit from the same property business

What happens if the losses just keep on coming?

ProDave

Crashy_Time wrote: »

What happens if the losses just keep on coming?

Then you are in the wrong business or doing something wrong.

Crashy_Time

ProDave wrote: »

Then you are in the wrong business or doing something wrong.

Many ordinary people took out BTL mortgages though because they thought the price of the house would keep going up, covering any shortfall in rent? Many many people are in the "wrong business" as far as property investment is concerned IMO.

00ec25

Crashy_Time wrote: »

Many ordinary people took out BTL mortgages though because they thought the price of the house would keep going up, covering any shortfall in rent? Many many people are in the "wrong business" as far as property investment is concerned IMO.

and thankfully only one Crashy Time exited house ownership at entirely the wrong time and now cannot get back and is reduced to praying for the price crash he has been predicting for the last 20 year so he can afford it. Meantime his landlord has laughed all the way to the bank with the rental payments

where would we be without Crashy on here, his ramblings provide such fun

Crashy_Time

00ec25 wrote: »

and thankfully only one Crashy Time exited house ownership at entirely the wrong time and now cannot get back and is reduced to praying for the price crash he has been predicting for the last 20 year so he can afford it. Meantime his landlord has laughed all the way to the bank with the rental payments

where would we be without Crashy on here, his ramblings provide such fun

:rotfl: Honestly can`t think of anyone who was predicting a property crash or had much interest in property prices in 1997/8. Sure you are not just sore at the thought of your properties losing "value"

00ec25

Crashy_Time wrote: »

Sure you are not just sore at the thought of your properties losing "value"

not in the slightest,

cash in bank account ^,
property in Surrey ^,
let property generates sufficient to be useful pension top up.
Kids eyeing up their inheritance :mad: