Individuals
There are two different methods of UK income tax relief for property business losses suffered by individuals:
- Ìý
•ÌýÌýÌýÌý the loss is set against future profits from the same property business—this is the normal method of tax relief for a loss
- Ìý
•ÌýÌýÌýÌý the loss is set against the individual's total income—this is available in very limited circumstances
These methods of tax relief are summarised below.
For further details of the use of property losses, see PIM4200 and Simon's Taxes B6.203.
Losses set against future profits
Usually, property business losses cannot be offset against the individual's other income and gains for the year. Instead the loss must be carried forward and set against future profits of the same property business (ITA 2007, s 118). This is a Step 2 relief for the purposes of the income
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Web page updated on 17 Mar 2025 14:22