My clients has a profit from his rental properties. He has losses from self employment. I cant offset can I? Property is ring fenced.
Thank you
Replies (3)
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Probably
as long as the trading losses are for the same year you can set them against total income including the rents
Agreed
Property income is not completely ring fenced - you just cannot relieve property losses against any other income, whether employed or self-employed (except in the unusual circumstance of the property losses being due to capital allowances). Indeed, UK and overseas properties constitute separate property businesses, so you cannot even set off losses in one against profits in the other property business.
Basic rule when dealing with losses is: always deal with the loss.
If you start looking at it from the other end of the telescope, as in: "I have a profit how do I get rid of it" then you'll get totally mixed up.