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 ???