Unused Property Finance Costs

skinnywhippet

Hi, I know this has been addressed but I can't see how the answers relate to me. I have one buy-to-let that made a small profit in 23-24 and my only other taxed income was a pension and interest that together with the BTL profit equal (more or less) the tax free allowance. Because I have not had to use the mortgage interest finance relief of 20%, does this mean I can carry the mortgage interesty forward to next year (24-25) and use as this well as the mortgage interest for next year, in case I do get into a tax paying situation? Thanks in advance

[Deleted User]

Yes you can. See Box where you will be entering the unused finance costs brought forward next year.

https://assets.publishing.service.gov.uk/media/65f9777e703c42001a58ef11/SA105_2024.pdf

skinnywhippet

[Deleted User] said:

Yes you can. See Box where you will be entering the unused finance costs brought forward next year.

That's great thanks. Do you know if it's just the previous year? I have been in the same situation for a few years so would have a fair bit to add together if that's possible. I know I could speak to an accountant but the amounts are so low I'd rather not! Thanks again

[Deleted User]

skinnywhippet said:

[Deleted User] said:

Yes you can. See Box where you will be entering the unused finance costs brought forward next year.

That's great thanks. Do you know if it's just the previous year? I have been in the same situation for a few years so would have a fair bit to add together if that's possible. I know I could speak to an accountant but the amounts are so low I'd rather not! Thanks again

They can be carried forward indefinitely. 

If you declared the finance costs in earlier returns I would have a go at entering the total brought forward in that box. 

skinnywhippet

Ok thanks!

silvercar

In case you weren’t aware, you have a £1000 property allowance that you could use, instead of deducting expenses. If your costs for a single property are low, it may be advantageous to use this.

I’m unsure how this interacts with claiming mortgage interest however, particularly if you have previous years to bring forward.

Jeremy535897

silvercar said:

In case you weren’t aware, you have a £1000 property allowance that you could use, instead of deducting expenses. If your costs for a single property are low, it may be advantageous to use this.

I’m unsure how this interacts with claiming mortgage interest however, particularly if you have previous years to bring forward.

You can't claim anything for finance costs if you claim the property allowance, so that year's finance costs would cease to be available for carry forward.

[Deleted User]

silvercar said:

In case you weren’t aware, you have a £1000 property allowance that you could use, instead of deducting expenses. If your costs for a single property are low, it may be advantageous to use this.

I’m unsure how this interacts with claiming mortgage interest however, particularly if you have previous years to bring forward.

The op ‘has only made a small profit’ . It could well be that the trading allowance is claimed but, if not, it should also be noted that one cannot claim the trading allowance to create a loss. 

skinnywhippet

Thanks all for the above. Allowable costs were over the £1k by the time I'd paid for agent commissions, insurance, and repairs so didn't use the property allowance