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Posted Mon, 13 Sep 2021 09:13:35 GMT by Rothwell
Do you have to use property losses brought forward even if they use up the personal allowance?
Posted Wed, 15 Sep 2021 09:47:59 GMT by HMRC Admin 17

Thank you for your question.

Please refer to the guidance held at :

Property Income Manual   in respect of the utilisation of property losses carried forward  .

The losses can be carried forward from year to year if not required but they must be used/partly used in the first year that there is a taxable profit.  

Thank you.
Posted Wed, 15 Sep 2021 11:16:43 GMT by Rothwell
So to clarify is taxable profit before or after personal allowance
Posted Thu, 16 Sep 2021 16:47:40 GMT by HMRC Admin 10

Thank you for your further question.

The amount of the loss carried forward must be used in the first year that there is a taxable profit even if this reduces your taxable profit to below the personal allowance.

An example would be if your rental income was £8000, and this was your only income, and you had £5000 of losses brought forward, the full amount of the losses brought forward must be used against your rental income reducing this to £3000.

If your losses brought forward exceed your profit then you would use the amount of losses to reduce your profit to nil and any balance of losses can be carried forward to the following year.

If you require any further information regarding this please contact our Self-Assessment helpline on 0300 200 3310.



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