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Carry forward of unrelieved finance costs

What to carry forward when no relief given on previous years finance costs disallowed as no tax due

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I let out 5 properties. Last year made a combined loss of £500 after charging 100% of finance costs in rental accounts.

When adding back the 25% finance costs of £5,000 net profit becomes  £4,500 so still covered by personal allowances. I did not benefit from the 20% tax relief on the £5,000 added back finance costs as there was no tax to pay.

Am I correct in thinking that there are no residential finance costs to bring forward or do I bring forward all the £5,000 residential finance costs unutilised from last year ? Maybe  I bring forward the loss ( unadjusted for the finance costs addback) of £500 perhaps ?

In the past, I would have had tax relief on the losses brought forward of £500 in 18/19 ( ie £500 x 20% = £100). If I treat the £5,000 as unrelieved finance costs brought forward I will save £1,000  ???

 

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By bernard michael
17th Jan 2020 10:01

Why not employ an accountant ??

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By WhichTyler
17th Jan 2020 10:06

Happy Friday

May I be the first to suggest that someone who owns 5 properties and takes an income from them has the resources (and the need) to take paid professional advice from a local accountant who can advise on the correct treatment and your overall position?

All the best

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