Hi James, I have the same issue and I wrote to HMRC and they said that if I had loses from previous years to carry forward then I would have to keep track of them myself. I share your concern about the 2017/18 return showing no loss to carry forward because it auto calculates and then actually entering a value for the 2018/19 return. I don't think that they have given much thought to this TBH and everything is based around the new system of adding the profit on to any of your other earned income and then giving you the 20% tax credit for the finance costs at the end. It also means that any losses from previous years will be quickly used up. There are some examples on HMRC's website and it clearly says that the tax credit should not result in a tax refund. It states that the tax credit will be the lowest value of either the profit, the finance costs or the total income. Hence, if you have zero profit then you will have zero tax credit. If I understand the example correctly it means that we will be able to carry forward the unused finance cost until we eventually go into profit.
See example 4 in this link
https://www.gov.uk/guidance/changes-...g-case-studies
Carrying forward losses over multiple years: a bug in the self-assessment form?
Collapse
X
-
PS: there is an obvious (although untidy) away around this problem, I realise, which is simply to put £17,337 in the "Loss brought forward used against this year's profit" box, and then I can simply remember to put the £22,680 further carried over loss on my 2018/19 return. However, my worry is that this would look odd to HMRC if they cross-reference the two years' returns.
Leave a comment:
-
Carrying forward losses over multiple years: a bug in the self-assessment form?
In 2017/18, I made £17,337 profit on my property rentals. However, I had a £40,017 loss from previous tax years to carry over, which should both wipe out my profit for 2017/18 and leave me with a £22,680 remaining loss to carry forward to 2018/19.
I put this into my self-assessment form, and the website came up with the attached screenshot, which all looks exactly how it should be. Happy days, I thought!
However, when I clicked "next" I got the following error message: 'Loss brought forward used against this year's profits' must not exceed 'Adjusted profit for the year'. Please amend.
Aaargh! I then clicked on the help icon next to the "Loss brought forward used against this year's profit" box and it came up with the following (I've put the key sentence in blue text):
Loss brought forward used against this year’s profit
Enter any loss brought forward from earlier years up to the amount in ‘Adjusted profit for the year’ .Include any amount brought forward that you're now setting against 2017 to 2018 Income from Property profits. This figure must not exceed the 'Adjusted profit for the year' figure. If your loss is higher than your profit, provide the remaining losses available to carry forward in the 'Loss to carry forward to following year, including unused losses brought forward’.
Am I missing something obvious, or is this a bug in the HMRC website?
Tags: None
Latest Activity
Collapse
-
by bobcatHi all,
We are currently completing the annual tax return for my wife and just wondering whether we could be more tax efficient! We no longer have any loans on the properties or major replacements planned so our tax payable is more than previous years. I don't mind paying tax but am wondering...-
Channel: Tax Questions
09-12-2019, 17:40 PM -
-
Reply to Could we be more tax efficient!by AndrewDodYou probably are not missing much obvious - pay the tax....
Boiler servicing, tax software perhaps, maybe take the opportunity to fix stuff as you go otherwise you may end up with large expenses at the end with nothing to claim against. Tenant advertising, deposit protection fees, tenancy...-
Channel: Tax Questions
09-12-2019, 20:01 PM -
-
Reply to Could we be more tax efficient!by JK0I'd definitely claim the mileage. I believe it's 45p per mile, so worth claming.
Are you both putting the maximum into your pensions?-
Channel: Tax Questions
09-12-2019, 19:41 PM -
-
Reply to PPR questionby Gordon999If you only owned one property during 2012-2014, you were paying the council tax bill and it was not rented out , I think you can safely claim ppr for that initial period.
-
Channel: Tax Questions
09-12-2019, 14:20 PM -
-
by PamgiobertiHi,
I am looking for a little advice.
I purchased a run down home to live in back im 2012, I spent my time between there and my parents as I was doing it up.
My father fell ill at this time and work slowed down, he passed away and I had to stay with my disabled...-
Channel: Tax Questions
09-12-2019, 01:53 AM -
-
Reply to PPR questionby PamgiobertiThank you. Nothing apart from the fact it was a normal mortgage and changed to a buy to let when it was rented out. I was living with my parents at the time and was very excited to get my first home. I would have moved my mother in that house but it wasnt big enough.
I guess it's difficult...-
Channel: Tax Questions
09-12-2019, 14:15 PM -
-
Reply to PPR questionby jpkeatesIt becomes 9 months for properties disposed of after that point.
-
Channel: Tax Questions
09-12-2019, 13:51 PM -
-
Reply to PPR questionThink 18 month compo ends 05/04/2020....
-
Channel: Tax Questions
09-12-2019, 13:25 PM -
-
Reply to PPR questionby jpkeatesYou either lived there or you didn't.
It's a matter of fact, rather than anything we can try and reason through.
I think, in your case, I'd be tempted to claim a short initial residence, while you were doing it up and before you moved in with your mother first time.
That, at...-
Channel: Tax Questions
09-12-2019, 12:00 PM -
-
Reply to PPR questionSorry to read of your losses.
What evidence do you have of your intention to live there - eg putting your then-current home up for sale and/or giving notice if rented?-
Channel: Tax Questions
09-12-2019, 11:33 AM -
Leave a comment: