Tax Losses

[Mattymanc]

I have a couple of properties for rental purposes. My tax knowledge is as low as it gets, but when I fill in my self assessment I am wondering how I fill in my losses.

 

My Income is approx £3,000

My Losses is approx £6,500 (various repairs etc)

 

Do I have to declare my full income and my full losses when I fill in my self assessment?

 

Or can I carry some of my losses over to next years tax assessment?

 

Am just concerned if I have to declare my full losses, which are £3,500 over my profits, will they be automatically carried over to next years tax assessment or will I lose them?

 

Thanks,

Matthew McGowan

[Carryon Regardless]

Losses are automatically carried till offset.

[Richlist]

Are you sure that all of your £6500 expenses are revenue expenses ie subject to income tax & not capital expenses and subject to CGT ?

[Mattymanc]

Thanks for your help. I would, as I interpret it, say it's revenue expenses. I had tenants in the property and I had to repair the roof, replace some radiators and it needed a full rewire as per the electrical inspection. Including various other issues... Yes, it has been an expensive property Grrrrrrr... 

[Richlist]

Provided all of the work involved like for like repairs & replacements then it's revenue.

If there was any element of improvement e.g.....larger radiators, extra sockets, extra lights etc etc then it's capital expense and cannot be offset against rental income.