If you rent out a property you need to let HMRC know that you are receiving this income by 5th October following the end of the tax year in which the income started. If you have made a profit, you may need to register for self assessment and complete a tax return but what do you do if you make losses on rental property?

You can carry forward any losses you make in your rental business and offset them against profits you make in future years.

A lot of people don’t report their losses to HMRC as they feel that with no tax to pay there is no need. However, by doing this, you are missing out and may, in future, pay more tax than is necessary as you can carry forward losses indefinitely.

If you would like some help with losses on rental property, including claiming for previous years, drop us a line by clicking here and we will be pleased to guide you.