Welcome To SingingPig.co.uk

Hi There

I wonder if you can help

I am employed and a 40% taxpayer and also own a number of properties

I have made an income loss on my portfolio for the last tax year and wanted to know if the PAYE tax can be combined with the property income to give me a combined figure of overall income and thus a reduced tax bill.

My accountant seems to think that the property income loss can only be carried forward to next year and not used against my PAYE tax.

All the properties i have are standard residential unfurnished.

Any advise is very much appreciated

Thanks

Raj Ghai

raj.ghai@321mail.co.uk

Tel 07814  735065

Raj

Yes they are a separate issue unfortunately. its just how it is. You will probably incur further losses which will roll up even more over time. As long as you increase your rents at every opportunity and minimise your maortgages - one day you will get into profit and then you will be laughiung becasue these rolled over losses can then be offset against that years gains.So your first year of profit shoud mean you have little or no tax to pay.

I would normally suggest you seek an accountants view - but youve had it already so I would just take it on the chin.

Hi Greg

Thanks for your quick response

That clarifies the situation up nicely

All the best

Raj

not that Greg really needs it, but to confirm he is spot on.

Losses from residential lettings can only be rolled forward to the following year. What should happen over time as the mortgages are paid down and rents rise over time is that you move from loss to a profit and then are able to utilise these losses.  That is to say assuming you have some good properties they should prove to be valuable in the future and so well worth computing properly.

Regards,

Thanks James

I am hoping I have some good properties !!!!

Time will tell

Thanks for your advise

Regards

Raj