bowler Posted January 14, 2011 Report Share Posted January 14, 2011 Hi All! I started renting my flat late March 09. My total income for 08-09 was £407 and my total loss was (£217). Under the description on the Directgov website: Who need to complete a tax return: income from property (before deducting allowable expenses) of £10,000 or more. income from property (after deducting allowable expenses) of £2,500 or more. Now it's pretty obvious from this that I didn't need to submit a return for 08-09. However, 09-10 my total income was £12,000 and income after allowable expenses was £1,434. My question I hope is simple, for the 09-10 period it appears I will have to make a tax return as my income exceeded £10K, will I have to pay tax on the £1,434 profit I made as this is below the £2,500 quoted in the income after deducting allowable expenses? i.e. is the £2,500 an allowance? And also, as I didn't file a return the year before, can I still carry the loss over to 09-10? Thanks! Link to comment Share on other sites More sharing options...
Melboy Posted January 14, 2011 Report Share Posted January 14, 2011 The short answer is yes you will............... HMRC will require you to provide your income/expendenture on your rental property even though you may be above or below any taxation band/level. HMRC always have the final word! Mel. Link to comment Share on other sites More sharing options...
bowler Posted January 14, 2011 Author Report Share Posted January 14, 2011 Thanks Mel! I thought so! Seems a bit harsh as I could earn £9,999 and make £2,499 profit and I wouldn't pay a penny! Do you know about carrying the loss over? Link to comment Share on other sites More sharing options...
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