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Where Taxpayers and Advisers Meet

1000 property income allowance.

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am
1000 property income allowance.

Postby someone » Sat Jul 31, 2021 12:45 pm

If I use the property income under 1000 route to not declare property income on my tax return, do I lose any losses and unused restricted fiance costs that would otherwise be carried forward from the previous year?

I have (approx): property income 500, expenses 100, restricted finance 100, losses brought forward 1800, restricted finance brought forward 3800.

If I'm going to lose these losses then it probably makes sense for me to do the property income section as there's a (slim) chance I'll be retired and a basic rate tax payer in five years time when the 4K or so of restricted finance allowance will be being used.

OTOH, if I don't lose the historical figures it makes more sense to use the 1000 allowance.

(The reason the losses are so high relative to income is that I had one bad year a few years ago when I was 100% owner and the following year I transferred 98% ownership to my wife. My losses were (almost) used up in the 2019-20 tax year so on 6th April 2020 she started receiving 98% of the income via form 17, the year a before it was 50/50)

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: 1000 property income allowance.

Postby someone » Sat Jul 31, 2021 6:53 pm

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4460

I think this is saying that using the 1000 allowance, profits (and extenses) are NIL for the year so I think the earlier year losses will continue to carry forwards.


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