hi
client rents out 2 properties -in same year one shows loss , one profit -net one against other for tax return or shown separately , loss carried forward??
thanks
Replies (6)
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Choice?
I thought as it was one business you had no choice but to net them off? What am i missing?
If they are both in the UK then
it's a single UK property business.
If both overseas the a single foreign property business.
One in the UK and one overseas there are two property businesses and no set off between the two. Ditto if one a personal property, and the other a partnership property
See ITTOIA ss 265 & 265 ... s859(2)
NFR exception
If any property is let "Not at a Full Rent" then the losses on that property cannot be offset against the income from any others.
This is most likely to arise in a family situation and therefore in such circumstances needs to be considered.
NFR Losses
I didn't think there was any such thing as an NFR loss anymore?
I thought that (as per PIM4205, 5th paragraph) HMRC argued that to the extent that any expenses created a loss on such a property, they weren't incurred wholly and exclusively for the purposes of the rental buiness?