Property Development losses
I have a partnership that developed a plot into five units, intending to sell on, making a nice profit.
We all know the story, the market dropped and they were unable to sell, instead holding on to them and letting them out, until the market recovers.
In 2007/08, and 2008/09 they made a trading loss which couldn't be relieved anywhere. in 2010/11 they made a rental profit from the units they developed, declared on the partnership return. Can I bring forward the old losses and set them against the rents? There was no doubt in my mind that I couldn't, but a colleague of mine is adamant that I can - he says because they directly relate to the trade. He's not right, is he?
I left the office at 10.30 last night and I've been back in since 6am. My brain has stopped working.
All help greatly appreciated, as always.
- Software recommendations? 280 4
- Goodie bag 113 2
- Budget 2015 predictions 187 5
- Husband Wife let property 137 2
- Lack of Quickbooks Online Coverage 439 8
- Career in Practice 118 2
- Relevant life plan 340 8
- Limited Company expenses 374 8
- Physiotherapy And Vat 192 6
- Telemarketing 161 4
- 6th March RTI deadline. Can FPS be submitted on 6th March? 151 1
- Awkward shareholder (sister) 137 1
- New tax codes for ex-employees 180 3
- how to value rental space 101 3
- Directors loan - no longer a director 327 4
- NHS PENSIONS XFER ABROAD 69 1
- We contribute a percentage of employees' salaries to a pension scheme set up by them - do we need to get involved in auto-enrolment? 463 5
- Output tax for retailer 262 6
- Partnership Tax Return £100 penalty-was a tax return due in this case? 449 11
- Failure to operate PAYE 1,932 32
- Possible Partnership? 601
- Tax and accounting treatment on long lease granted from freehold 500
- New Fangled Penalties 408
- Clubs and Taxable Income 330
- Purchase of property freehold - capitalisation of costs 297
- Closed PAYE schemes and auto enrolment 252
- Loans to other companies 243
- Lenovo – Superfish & Komodia – is your PC vulnerable 211
- Charity dissolution and newly merged charity 207
- Outsource Data Entry 206