For tax purposes is there a limit to the number of years we can carry over losses?

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    For tax purposes is there a limit to the number of years we can carry over losses?

    1.Pretty sure I read there is no limit! and to give kids the reigns if older brcause you cant transfer losses. perhaps was a different tax i read for though
    2. Can utility bills during empty periods be claimed as expenses?
    3. Think I read that I can either choose the 1k allowance or claim expenses, not both. is that correct

    I found out we can also claim office suppies, travel expenses office use (£4 per week)

    #2
    1-No, but they have to be recognised when there’s sufficient income to use them. A rental business shouldn’t have that many losses to carry forward.
    2-Yes.
    3-Yes.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      We can only comment on current rules, not what the chancellor or subsequent ones will change rules to. I.e. don't rely on cunning plans.
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        There is no official limit on how long you can carry losses forward, but don't be surprised if the company is continually making a loss each year the tax man doesn't open an investigation.

        The time limit is 4 years from the end of the tax year that you made the loss. Once the loss is claimed, it is available for life until used. The losses brought forward are only used up after the annual exemption in future years.

        Comment


          #5
          OP's question concerns losses from a rental business where the operating expenses exceed the rental income and results in a loss for the year. Subsequently withing a few years would see a recovery of rental business to annual profits. If you don't report any rental income over 4 years, the tax office may consider you have closed the rental business.

          ash72 ( post 4 ) concerns capital gains losses arising from sale of investment assets.

          Comment


            #6
            Thanks. ok, im not going to actually register as a business though, at least not yet, shouldnt change anything though.

            Comment


              #7
              Hmm. I'm actually considering letting a room out on airbnb in the house I live in too. How many years of utility bills can I count as losses against this then? I assume none, becasue otherwise it is hard to define a line and seems somewhat sneaky..

              Comment


                #8
                So rather than claim expenses you can just claim £1k allowance?

                Comment


                  #9
                  Originally posted by Steve Macey View Post
                  Hmm. I'm actually considering letting a room out on airbnb in the house I live in too. How many years of utility bills can I count as losses against this then? I assume none, becasue otherwise it is hard to define a line and seems somewhat sneaky..
                  There is a line.
                  Letting a property is residential property investment, letting a room on AirBnb isn't.

                  The tax rules are different.

                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment


                    #10
                    Originally posted by Steve Macey View Post
                    Hmm. I'm actually considering letting a room out on airbnb in the house I live in too. How many years of utility bills can I count as losses against this then? I assume none, becasue otherwise it is hard to define a line and seems somewhat sneaky..
                    A tenant living in landlord's home may be classed as a lodger . if the rental income paid by lodger is below £7500 , there is no requirement for tax return and to report the rental income and expenses.

                    Comment


                      #11
                      Originally posted by Gordon999 View Post

                      A tenant living in landlord's home may be classed as a lodger . if the rental income paid by lodger is below £7500 , there is no requirement for tax return and to report the rental income and expenses.
                      https://www.gov.uk/renting-out-a-property/paying-tax
                      suugests I have to complete the tax return if after expenses I earn more than 2.5k, or was this under a different rule that Keates mentioned?

                      Also I am hoping inheritance tax counts as an expense.

                      Comment


                        #12
                        Originally posted by Steve Macey View Post
                        Also I am hoping inheritance tax counts as an expense.
                        IHT is paid by the estate of a dead person when their affairs are settled.

                        For who could it then be an expense?
                        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                        Comment


                          #13
                          good point, damn.
                          And yes it seems air bnb comes under the 7.5k rent a room scheme rules.

                          Comment


                            #14
                            Originally posted by Steve Macey View Post

                            https://www.gov.uk/renting-out-a-property/paying-tax
                            suugests I have to complete the tax return if after expenses I earn more than 2.5k, or was this under a different rule that Keates mentioned?

                            Also I am hoping inheritance tax counts as an expense.
                            The details for scheme under £7500 :

                            https://www.gov.uk/government/public...om-scheme-2021

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