Uncommercial property business

Uncommercial property business

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I understand that if a company carries on a trade on an uncommercial basis, its losses are not lost entirely - it only loses the right to offset or carry back. It can carry them forward against profits of the same trade (I know, it's an academic point since an uncommercial trade is unlikely to make profits - but it could happen).

But the operation of s64 of CTA 2010 seems to indicate that in the case of a property business any losses are lost for good. Or can they be carried forward to set against future profits of the same rental business? The wording of the legislation suggests not.

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By King_Maker
08th Jul 2015 08:58

You are correct - there is a similar restriction for Income Tax.

I assume there is no mortgage/loan interest payable.

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