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Posted Wed, 27 Apr 2022 11:46:06 GMT by Jon Blake
Hello. I am letting a property in Portugal. It will qualify as FHL. For 2021-22 tax year there will be 0 rental, but we incurred quite a lot of expenses in February / March to get the property ready. Therefore, effectively 2021-22 will be a loss. Do I need to complete the self assessment pages for 2021-22 to declare this loss, or can these expenses be included in the 2022-23 return. Also, Portugal tax year runs from 1st Jan - 31st Dec. To make record keeping easier, can I use the same period in the UK tax self assessment. So for calendar year 2022 treat all income / expenditure as the UK 2022-23 tax year? Thank you.
Posted Tue, 03 May 2022 14:46:24 GMT by HMRC Admin 19

You should complete the relevant pages of your 2021/22 to claim the FHL loss, which will then be available to carry forward to future tax years (to be set off against any future FHL profits).

As regards the difference between the Portugese and the UK tax years, you will have to work out what proportion of your FHL profits and expenses fall within each UK tax year, and declare the relevant amounts accordingly.

Thank you.
Posted Wed, 04 May 2022 15:46:55 GMT by Jon Blake
Thank you!

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