Residential Finance Cost

Hello, There is mortgage interest in my letting residential property. Due to the rental income in the tax year is just £1,000(net), may I choose NOT to claim the property finance cost and carry forward full amount to next year? For example: Finance cost = £3,000 Enter "0" in Residential Property Finance Costs Enter "3,000" in Unused Residential Property Finance Costs brought forward Pls comment. Thanks.

Hello, I think I did not provide complete information in my previous post. Here is the full picture: Rental income = £1,000 Finance cost = £3,000 Total taxable income = £1,000 Total taxable income deducting personal allowance = £0 Should I : Enter "0" in Residential Property Finance Costs Enter "3,000" in Unused Residential Property Finance Costs Brought Forward Pls comment. Thanks.

Hi,
You are correct, you may choose not to claim property finance costs and carry such amount forward to a future year where it would be more beneficial to yourself.
Thankyou.

Hi,
Please refer to the UK property notes:
Self Assessment: UK property (SA105) which advises to use box 45 to include unused residential property finance costs from the property from an earlier year.
Any balance of residential finance costs which are still unrelieved may be carried forward to future years of the same property business.
More information can be found at:
Tax relief for residential landlords: how it's worked out
Thankyou.