I have purchased a couple of properties for rental purposes. When I fill in my self-assessment return, I am wondering how I claim losses. My income is approximately £3,000, and my losses are approximately £6,500. Do I have to declare my full income and my full losses when I fill in my self-assessment return, or can I carry some of my losses over to next year's tax assessment return? If I have to declare my full losses, which are £3,500 over my profits, will they be automatically carried over to next year’s tax assessment, or will I lose them?  

Arthur Weller replies:  

You need to declare your full income and your full losses when you fill in your self-assessment. Then the £3,500 net losses will automatically be carried forward to the next year. Look at HMRC’s internal Property Income manual at PIM4210.