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How to deal with property losses against general income

Shared from Tax Insider: How to deal with property losses against general income
By Meg Saksida, November 2021

Meg Saksida explains the mechanics of claims for rental property losses against general income. 

Generally, if a rental property business ends the year with a loss, there are very limited options for relieving the loss.  

Usually, the loss must be carried forward; relieving the loss in the same tax year as the loss is only available if there are loss making rentals in the same business. 

Loss relief restrictions 

This is because a ‘UK property business’ includes all the rentals that the landlord has in the UK, both residential and commercial, so if a commercial rental property in London is loss making, but a residential rental property in Bristol is making a profit, the London loss can be set off against the Bristol profit in the same tax year of the loss. There

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