Losses on FHL carried forward impact on tax credit

Do losses bf on FHL reduce the profit for tax credit purposes?

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Client has a property in negative equity and is paying an interest only mortgage. To cover the costs and generate additional income this is let out as furnished holiday lettings and is now generating a profit, but with losses brought forward from previous years. When declaring the income for tax credit purposes is this loss brought forward able to be used to reduce the profit in the same way as it is for income tax purposes? My belief is that this is the case, but I would welcome any clarification.

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By gainsborough
24th Jan 2019 12:54

Hi Carole. See note 3 on HMRC's tax credit worksheet:

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By carolelmcarre
24th Jan 2019 13:20

Thanks for the link, I had already looked at this but just was not 100% sure (a common reaction of mine to HMRC guidance!) that it was saying what I though it was.

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