Rental Losses

20th March 2024

What happens if your rental or Furnished Holiday Let (FHL) business makes a loss in the tax year and how can you use these losses to save tax.


For a business to make a taxable loss, the taxable expenses will be higher than the taxable income. These losses can be used in a few different ways:
  • If you have a single property business, then the losses can only be used against the future profits of that business, this is the same regarding FHL’s.


  • If you have multiple properties in the same business, the loss in one of your properties will be offset against the taxable profits in the properties. This will reduce the taxable profits until the loss has been fully utilized, or if there is still a loss remaining after all the taxable profits have been reduced then this will be carried forward and used against any future taxable profits that the rental business makes in future tax years.


  • If a loss is carried forward in a rental business, there is no limit of how many years the loss can be carried forward. If, however the business ceases to trade then any unused losses will be lost.


Get In Touch

For more information or advice on rental losses, contact your local Whitings office today.


Disclaimer - All information in this post was correct at time of writing.
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