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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4546
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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Can i reclaim a loss on a buy to let property which i have

Customer Question

Can i reclaim a loss on a buy to let property which i have recently sold
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

As you talking about "Rental Losses" ? Rental losses are common occurrence with mortgage interest, repairs and empty periods to deal with.

If you have rental losses, you cannot directly reclaim them. The tax system does not allow it and it is not at all generous with that.

First of all, there is no automatic, general right to offset the loss against other income, such as from a job or a business.. However, you CAN reclaim them under specific circumstances. That is not to say that there is no tax relief at all on a rental loss. Any loss is carried forward to the next year in which there is a rental profit (from the same property, or a different one), and used to reduce that profit. If the rental property business never makes a profit before it ends, the tax relief would then be lost forever.

Taking a immediate loss only qualifies for direct tax relief ONLY IN CASE of furnished holiday lettings.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Customer: replied 1 year ago.
How does this apply then if you sell the property and make a loss from the sale. Can this be offset against anything.
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome again. Sorry for the delayed reply. I was bit unwell.

YES. This applies even if you make loss on sale. You cannot adjust rental gains against that.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,