Seeking advice: Income Tax - Rental Income. Allowable expenses post cessation

Seeking advice: Income Tax - Rental Income....

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Good evening,

I have let out my only property for the previous few years and have completed annual SA tax returns since immediately after letting it out. Before that, I lived in it for a short amount of time.

The property will be sold around May/June 2016 and at the same time my mortgage will be paid off, incurring an early repayment charge. This is NOT a premium charge. The property will stop being let out around the same time. I will not be purchasing another property immediately after and I will not be receiving any rental income from any sources.

My preference is to close out all my tax affairs regarding the property on the next tax return for TY15-16, which I would like to send off in advance this summer.

Questions:

1. Is it possible to elect to include Apr-June 2016 rental income loss (i.e. loss due to the mortgage early repayment charge which will be incurred) in the TY15-16 tax return?

2. My understanding is that I will not be able to utilise this loss against any income going forward as I will not have any rental income again. Is this correct or will it offset against PAYE?

Thanks,

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