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Furnished Holiday Let 11/12 loss and not renting out 12/13

Furnished Holiday Let 11/12 loss and not...

Hi. does anybody know what happens to the loss made on a FHL if the owner decides not to continue renting the property in 12/13 as they now cannot offset it against their taxed income? 

There is a box to tick on the SA software to say ceased income 2012-13, the notes say HMRC are responsible for adjusting your tax code. Does this mean they will offset the loss against taxable income but through the tax code as opposed to a lump sum payment as in pevious years.


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19th May 2012 08:36

As with a trade losses are lost

Hi - unless it's a temporary cessation (up to 3 years I think) from the same property, once you cease the FHL the losses die as they would do with the cessation of a trade and, obviously, if an ordinary property letting business ceases.

With regard to your first paragraph about offsetting of losses against other income, just in case, this ceased in 2010-11 so any losses in 2011-12 remain within the FHL business.  The CGT benefits of an FHL are still in place so many are still continuing with the business, despite the restriction of loss relief.


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By ACDWebb
21st May 2012 07:58

As above

I suspect that the source has ceased is to pick up losses that are lost as the business has ceased.

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