Can rental losses be carried forward?
By the VoxaMTD team. Last verified 31 October 2026
Yes. You can only offset rental losses against future profits in the same business, which includes profits from your other properties.
Losses from one property can offset profits from another property within the same property business, so a loss on one flat reduces profit on another in the same year.
Uncommercial lets, such as to a relative at a reduced rent, are treated differently: expenses are capped at the rent received, so no loss arises.
A loss cannot be created by the property allowance, so if you expect losses, claim your actual expenses instead. Keep a record of the loss each year so you know the amount available. Because losses can only be used against the same rental business, think about this before you sell or stop letting, since unused losses cannot be set against other kinds of income.
Read next
- What is Property losses? →
- Rental Income Tax Tips for UK Landlords (2026) →
- Year-end Self Assessment →
Sources
- GOV.UK: Renting out a property: paying tax
- GOV.UK: Income Tax when you rent out a property: working out your rental income
- GOV.UK: Tax-free allowances on property and trading income