Can Property Losses Be Carried Back?

Posted on 7 January 2020

There is a widely unknown question that uneducated property owners may have, and that is ‘Can Property losses be carried back?’

The simple answer to this question is yes. However this is only if you are in a company or organisation that is liable for corporation tax. On the Gov.Uk website, it tells us this; “If your company or organisation is liable for Corporation Tax and makes a loss from trading, the sale or disposal of a capital asset or on property income, then you may be able to claim relief from Corporation Tax.”

This means that if a sole person was to purchase a property and made a loss then they would not be able to claim any losses back. So it really depends what type of person was to own the property to whether they can have their losses carried back.

However, at the start of the ‘Portfolio Build’ it is likely that a tax loss will be made, as property expenses will be higher than property income due to the fact that the Portfolio is unlikely to have more than 1 or 2 properties at the start. Once the portfolio has been expanded then you will have a much higher chance of making high profits from the Property Portfolio.


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