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Where Taxpayers and Advisers Meet

Claiming losses after Buy to Let is sold?

Andrewbullie
Posts:2
Joined:Thu Mar 03, 2022 9:15 pm
Claiming losses after Buy to Let is sold?

Postby Andrewbullie » Thu Mar 03, 2022 9:28 pm

Hi All

I have a rental property which I have paid income tax on previously. Occasionally, I have incurred losses and I know that I have been able to carry those losses forward to often against future profits in the following tax year. However, when my tenant moved out in July 2021, he left the place in a real mess. It cost me several thousands of pounds to put it right and I lost 8 months rent whilst paying full council tax, mortgage, insurance and utility bills, etc... As I make a net loss every month due to the removal of tax relief on the cost of finance, I decided to see if I could sell the property to get back what I owe. Surprisingly, it sold within a week at £2k less than the amount owed on the mortgage so I will put the extra in to do away with the headache. My question is: As I will no longer have a rental property moving forward to the 22/23 tax year, is there any way in which I can claim the losses incurred over the last 8 months back? I can't really carry them forward as I won't be renting a property to offset them against. For info, I will still be required to do a tax return each year because my other half claims Child Benefit and we don't qualify due to my income so I effectively have to pay it all back. Can I offset against this perhaps or my PAYE income tax code?

Thanks

Andrew

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Claiming losses after Buy to Let is sold?

Postby bd6759 » Thu Mar 03, 2022 10:02 pm

Property business losses cannot be set against general income or chargeable gains.

Andrewbullie
Posts:2
Joined:Thu Mar 03, 2022 9:15 pm

Re: Claiming losses after Buy to Let is sold?

Postby Andrewbullie » Thu Mar 03, 2022 11:30 pm

Thanks, I thought that might be the case.


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