Can I use previous years losses to reduce profits

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    Can I use previous years losses to reduce profits

    Over the years I've made a £50k loss from renting property. This year Ive made £3k profit. My question is, is it ok to deduct some of the previous years losses to offset against this years profits? So that on my tax return I can enter £0 profit made?
    I normally just carry all my losses forward but if I dont use them whats the point?


    #2
    You can't just make it up. There are procedures for carrying forward tax losses from one year to another and it will depend on what your tax return says for the previous year.

    If you were making £50k loss then why are you bothering to continue? If I were HMRC I would want to look at little closer at your accounts but they don't have the staff so actually, you can probably just keep making it up

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      #3
      Trex_99 - yes you can - see similar question in HMRC's forum

      https://online.hmrc.gov.uk/webchatpr...list/2792.page

      Comment


        #4
        If you have losses from past years to carry forward, then you should submit a paper tax return every year before end of Oct .

        On your tax return for 2017-2018 , you may have gross rent = £10,000 and maintenance expenses = £7000, so your rental profit = £3000.

        Your losses from past years = £50,000 are brought forward and added to the current year profit £3000 = £47,000 loss to carry forward to next year. . .

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