Offsetting rental losses against other income.
Am I right in thinking that rental losses cannot be offset against employment income but can just be carried forward for relief against future rental profits?
Client is employed, can't sell his old house and has moved in with his new wife. He plans on renting it for a couple of years to a friend at the lower end of commercial rate (but still commercial) but the rent will not cover the mortgage interest and upkeep costs.
I believe you can only offset holiday lettings rental losses against other income but could someone please confirm the losses in the above scenario will not be able to be offset? Or explain if it can.