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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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HMRC requested accounts for income from our French property

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HMRC requested accounts for income from our French property for the years that we let it out (2008 - 2010) We submitted accounts that showed that we sold the property in 2010 with a loss of £110,000. The revenue accepted this and said there would be no more accounts required. I am self-employed and am now preparing my 2013/2014 accounts. Can I include the previous loss in my returns?.
When you make a loss by selling or disposing of an asset, you can only set it against your income in very specific circumstances.
As long as the loss is allowable, you can deduct it from any gains made that year - or in a later tax year. It may reduce the amount of Capital Gains Tax you pay. If you did not have capital gains then you would not claim a loss now against your self employment.
Allowable losses must be deducted as far as possible from chargeable gains accruing in the same year of assessment,
any balance must be carried forward without time limit and deducted from chargeable gains accruing in the earliest later year. Losses brought forward are deducted after losses accruing in the year of assessment and cannot reduce the net chargeable gains to below the annual exempt amount. Any losses which thus cannot be deducted remain available for deduction in later years.
Unfortunately you would not be allowed to claim the loss now against your income.
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