Self assessment tax and rental income

[ladymcbeth]

I know that one cannot deduct loss on rental income from profit on earned income and pay the tax on the balance but is it OK to deduct the loss on earned income from the profit on rental, deduct personal allowances and pay the tax on the difference if any.

Also if there is a residual personal tax allowance, and tax has been paid on bank interest, does one just deduct the remaining tax allowance from the gross interest earned and claim back the difference paid in tax on interest.

Thank you LadyMcBeth

[RAL]

in simple term

Lossess form the trade can be off set against other income including employment income. So the trade losses can be offset against profit from rental. (Assuming you are talking about sole trader business).

Then you can use your personal allowance to offset any other income. You can get the tax refund on the tax deducted on interest income.

Best to speak to the accountant if you have one.