Property business losses usually cannot be offset against the individual’s other income and gains for the year. Instead the loss is carried forward and set against future profits of the same property business (ITA 2007, s 118).
Remember, a UK property business. an overseas property business and furnished holiday lets are treated as separate businesses. This means that UK property business losses can be set against UK property business profits only and overseas property business losses can be set against overseas property business profits only.
In your case the building which gave rise to rental income has been demolished and is no longer in existence. The land which has the car park is being leased. In my opinion these are two different activities.
The grand daughter has bought the house in her name. Note, there is no mention whether there is a mortgage against this. Also the amounts loaned by the grand mother- Its not clear whether there is a clause to repay with or without interest.
Based on the above, in my opinion - as the grand daughter has the house in her name, and she is then sharing the place with her mates and charging rent, this income is accessible on her.
The mere fact that she is then paying this over to the grandmother (net of any expenses) can be treated as miscelleneous income - i am assuming the loan has been lent on a on "non- interest bearing basis".
My answers
Hi
Thanks - yes its the sales that are under the threshold.
I dont thisnk you can
I dont think they are available.
Property business losses usually cannot be offset against the individual’s other income and gains for the year. Instead the loss is carried forward and set against future profits of the same property business (ITA 2007, s 118).
Remember, a UK property business. an overseas property business and furnished holiday lets are treated as separate businesses. This means that UK property business losses can be set against UK property business profits only and overseas property business losses can be set against overseas property business profits only.
In your case the building which gave rise to rental income has been demolished and is no longer in existence. The land which has the car park is being leased. In my opinion these are two different activities.
Anyone else - please correct me if i am wrong.
I have a different view
The grand daughter has bought the house in her name. Note, there is no mention whether there is a mortgage against this. Also the amounts loaned by the grand mother- Its not clear whether there is a clause to repay with or without interest.
Based on the above, in my opinion - as the grand daughter has the house in her name, and she is then sharing the place with her mates and charging rent, this income is accessible on her.
The mere fact that she is then paying this over to the grandmother (net of any expenses) can be treated as miscelleneous income - i am assuming the loan has been lent on a on "non- interest bearing basis".