Notifying HMRC of pre-SA property losses

Notifying HMRC of pre-SA property losses

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Client made UK rental losses in 2012/13. Client was not in Self Assessment in that year and HMRC were not notified of the losses.

Registered for SA in 2013/14 - property losses b/f box was filled out with the 2012-13 loss figure and a note was put in the 'additional info' section of the tax return stating the income and total expenses for 2012-13 to explain the loss b/f figure.

Is this sufficient notice to HMRC for the client to be able to claim the losses? Or do I need to write to HMRC in addition to this?

Should I have given a breakdown of the expenses rather than the total? I need to resubmit the return as client has provided some additional info so I have the chance to update this if it helps.

Thanks in advance!

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By TaxAngel
06th Feb 2015 13:02

Should SA return have been submitted for 2012/13?

If your client had income from letting in 2012/13 then an SA return should have been submitted, even if the outcome was a property letting loss.  On the other hand if the losses relates only to 'pre-trading/letting expenses' then these should have been included in the 2013/14 return. I have had HMRC insist that if there was rental income in a tax year, a late SA tax return has to be submitted for the year in which the losses arose. On the other hand on another occasion with similar circumstances, we were only asked to quantify the losses in a schedule but the latter case was a 'tax check' case.

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Replying to Ruddles:
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By mackthefork
06th Feb 2015 13:11

I understand it depends on.....

the amount of rental income received in the tax year.

Regards

MtF

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