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Rental losses and rent a room

Use the losses against rent a room

Can I just double check that rental losses from  property A [not a FHL]can be utilised against profit from rent a room from landlords home Property B after using the rent a room relief of £7.5k

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14th Sep 2018 10:51

I don't like this misuse of anonymous.

Nevertheless: s309; s797(1).

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to Tax Dragon
14th Sep 2018 14:04

it might have been helpful if you told them which tax act you referred to ;-)

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to carnmores
14th Sep 2018 14:22

Fair comment - although you would hope that no practising professional would need to be told that bit.

Do you disagree with my citation point? I'm as bored of making it as you must be of reading it.

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to Tax Dragon
14th Sep 2018 15:40

we all need a reminder occasionally but yes i do

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to carnmores
14th Sep 2018 16:52

The thanks was from me (you are the first to bother to reply).

If you can tell me why, it might save me boring you again next time.

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to Tax Dragon
14th Sep 2018 18:04

why? because i am getting old and just been on holiday for 3 weeks and my brain needs to recover from the retsina

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By OC
14th Sep 2018 11:11

Yes

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14th Sep 2018 12:14

OP: anyone can pop up here and say “yes”, “no”, “maybe” or “depends”. Some might even say all four.

Now you could just take the answer blind, not knowing whether the respondent is a joker. You could wait a week for further responses and take a vote if you get them – trusting that other contributors would pounce on anything they see wrong in Aweb (happens more often than not – but, beware, not always). Or you could spend 40 minutes looking up previous responses from that contributor (and 40 more for any others), assessing whether they were generally accepted/consistently sensible, whether the contributor had demonstrated expertise in the area you were asking about, whatever.

Or you could spend 90 seconds looking at the legislation I cited for a definite answer.

Your choice.

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14th Sep 2018 12:53

But OC is right isnt he..rental losses can be offset against rent a room profits?

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14th Sep 2018 13:23

Yes, losses from a non FHL must be set against profits from a rent-a-room. There's no choice.

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to tonycourt
14th Sep 2018 17:32

You are making an assumption.

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to Tax Dragon
14th Sep 2018 17:50

Hmmmm! I broadly agree with your point about citing authority, but ambiguous responses, such as yours to mine, are also not helpful for not dissimilar reasons.

Can you enlighten me (and others reading this thread) with the point you're making?

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to tonycourt
14th Sep 2018 18:25

That "you must" (based on partial facts topped up with assumption(s)) must be caveated.

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to tonycourt
14th Sep 2018 18:53

Or assumptions stated.

Or (my real point.... yawn), rather than fill in the blanks (especially the anonymous blanks) the easiest, surest and MOST USEFUL approach is - guess what - to point the OP towards the relevant law (or similar).

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14th Sep 2018 17:53

No. Losses from property A (not an FHL) cannot be set against a profit from property B. You calculate one profit or loss for your UK (or non-UK) property business.

You cannot set losses from your UK property business against profits of your non-UK property business or vice versa. TaxDragons' point.

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to Portia Nina Levin
14th Sep 2018 18:17

You've fallen under HMRC's spell. Accounts aren't produced solely for HMRC's benefit. I feel comfortable saying that most landlords with more than one property produce separate accounts for each property. One might make a loss and another a profit. Further, in my experience they will look at each property as either profit making or loss making and not as a whole. The aggregation as one business is a statutory fiction.

As for point I made to TD about citations v ambiguous comments (which you partly answered); devil's advocate, sauce for the goose etc., pick your metaphor.

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to Portia Nina Levin
14th Sep 2018 18:18

I don't even have to go overseas. R-a-R can apply to some trading profits.

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