rental properties

rental properties

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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

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By pawncob
23rd Apr 2013 21:17

Your choice

Choose whichever is beneficial, it's all treated as one "business".

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By JCresswellTax
23rd Apr 2013 21:57

Choice?
I thought as it was one business you had no choice but to net them off? What am i missing?

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By pawncob
23rd Apr 2013 22:28

Single estate isn't automatic.

Surely the single estate option is electable.

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By ACDWebb
24th Apr 2013 07:45

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)

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By DMGbus
24th Apr 2013 08:28

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.

 

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By Steve Kesby
24th Apr 2013 11:30

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?

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