Rental Income received by Limited Company that has trading losses

Can Trading losses be set against rental income

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Hi - Limited Company has trading losses, and also receives rental income. Can the Trading losses be set off against rental income for Corporation tax purposes.

Many thanks

Replies (3)

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paddle steamer
By DJKL
30th Sep 2016 14:07

Are the trading losses arising in the same accounting period or are they brought forward trading losses?

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By stevebev2
30th Sep 2016 14:40

Hi Many thanks for reply.
They are brought forward trading losses.

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Replying to stevebev2:
paddle steamer
By DJKL
30th Sep 2016 15:35

If they are trading losses b/fwd no sideways offset is available, they can really only be used against future trading profits from the same trade, the rental profits cannot therefore be relieved.

I would though have a look at the years they arose (if still in time for amendment) as given there is rental income how did business treat say any interest paid in these earlier years, did it treat as a trading expense or did it treat as Non Trade Loan Relationship debits? If NTLR debits have not been recognised but ought to have been they might be more useful in a c/fwd scenario.

I would also take a look at AIA claims that are part of the b/fwd losses to see if possibly not claiming and instead claiming WDA in later year might assist accelerating using the losses.

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