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What is Property losses?
A property loss happens when your allowable expenses for a tax year are higher than your rental income. For individual landlords it is carried forward and set against future profits from the same property business.
Why it matters to landlords
A UK property loss generally cannot be set against your salary or self-employment income, except for limited capital allowance cases. It is used automatically against the next available profits.
Finance costs are not part of the loss calculation because they are relieved through the tax reduction instead. Unused finance cost reductions carry forward separately.
A loss must be reported on your return or final declaration to be carried forward.
MTD and Section 24 for landlords →