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  • RE: Carrying unused allowance and property 'expenses', and financial costs, forward.

    Thanks for your reply. Does 'expenses' in your reply cover the financial cost, specifically interest on the capital borrowed to purchase the property ? For example, if some of the financial cost is not needed (to get the money earned and liable for tax below £12570 one year) can it be used in later years ? Thanks
  • Carrying unused allowance and property 'expenses', and financial costs, forward.

    Hi, This question is about Self Assessment (SA100) and the rules governing carrying forward any unused allowance, 'expenses' and financial costs. Unfortunately I haven't found the answer to my questions and so would appreciate assistance. . This question relates to a UK tax payer (currently) owning a single property that they rent out. This rental income is this person's only income. . Please let me give an example: Rent received for the year: £12,000 Allowable Expenses : £1,200 Interest repayment on loan to buy the rented property (amount tapered to 20%): £1,400 . Because the rent received is below the allowance (£12,570) no tax is payable. My question is how much (if any) of the unused allowance (£12,570 - £12,000), unneeded Expenses (£1,200) and unneeded (20% of) Interest repayment (£1,400), can be carried forward to the next year's self assessment ? ('unneeded' meaning that because the calculated tax for the year was £0 there was no need to use allowable Expenses and Interest repayment to reduce it). Additionally, if anything can be carried forward, for how many years can this be done ? . If this person was to buy another property to rent out they would want to take advantage of the years of accumulated Expenses etc, if possible. . Thanks in advance.