I have invested personally in Buy To Let (BTL) properties over the last 10 years, and due to heavy expenditure on refurbishments, still have £70k in carried forward losses to offset against personal rental income.
Additionally, I've accurred £60k in carried forward unused residential finance costs (the 20% allowance on BTL mortgage interest, which you can't use if you have carried forward losses).
These 2 losses total £130k.
I make approx £30k personal profit per year from rental property, so it will take 5+ years to consume all my losses.
Great, but: I also have a solely owned LtdCo that has invested in property, however all its losses from refurbs have been used up. It will make about £50k profit this year from property, but also from several other non-property income streams, on which I'll have to pay nearly £10k corporation tax.
I know it's a separate legal entity but it's annoying to be paying corporation tax on profits when I'm having to carry over personal property losses.
Is there a legitimate way to rebalance this? E.g. Employment Income Manual 00730 says that:
> "it is possible for an employee or office holder to tender for work with their employer outside their normal duties, in circumstances where that individual will not be providing service as an employee or office holder but as a self-employed contractor."
I'm quite sure I can find all sorts of ways to provide chargeable services to my LtdCo in order to invoice my LtdCo, reducing its profit and increasing my own personal income: IT consultancy; Tax advice; Rent for office space in my home for example!
Is that legit? Or is there another, better way?
Note, I'm not trying to dodge tax, over the next 10 years say, the total tax take is likely to be the same, but I'd rather the tax was pushed to later years, partly because I don't trust a later gov't not to take away the carried forward unused residential finance costs.
Your thoughts and wisdom are appreciated.